trading profit

Trading profit

The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates.

Trading Profit

The profit that an investor derives from buying and selling short-term securities, or those that the investor holds for less than one year. Trading profits can be substantial if the investor knows what he/she is doing, but there is a good deal of risk involved. Governments often seek to encourage long-term investment at the expense of short-term, and because of this, trading profit is usually taxed at the (higher) income tax rate instead of the capital gains rate.

trading profit

The income derived from buying and selling a security at a profit within a relatively short-term period.

trading profit

see OPERATING PROFIT.
References in periodicals archive ?
Trading in 2015 likely to be ahead of previous guidance; Underlying Trading Profit (as defined below) expected to be around 95m.
THE plumbing supplier reported a first quarter update roughly as expected but its trading profit falling 21% to PS19m failed to impress.
It added that a strong pound had impacted trading profit by PS30 million, but announced that its strong cash generation would see it return PS250 million to investors via a share buyback programme within the next 12 months.
9 per cent, on the year before, while trading profit in continuing businesses, before exceptional items, rose by 3.
Fiat sharply cut its group targets for the next two years on Tuesday, saying languishing sales in austerity-hit Europe may mean its trading profit in 2014 is a third lower than it targeted two years ago.
Trading profit increased 25% to [pounds sterling]20
The society has seen a consequent strengthening of operating margins in food stores, which has contributed significantly to the increased trading profit.
However, its dessert making and ready meals division, Brookes Avana, suffered a pounds 15m fall in trading profit and a pounds 125m goodwill writedown, which contributed to an overall pre-tax loss of pounds 98.
Trading profit was down by just over 30% reflecting a first quarter loss reported by Stock and currency translation.
In a trading update yesterday, SCi said it expected to meet market expectations for a trading profit of about pounds 25m in the past financial year, which itself was upgraded by the City from pounds 22m in May.
ICI Paints continued to deliver good results with six percent comparable sales growth and nine percent comparable trading profit growth for the quarter, according to ICI.