holding period

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Holding period

Length of time a security is held.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Holding Period

1. In a long position, the period of time during which one owns a security. The holding period is important to calculating an investment's returns and performance. The holding period also applies to taxation on capital gains, as long-term investments are not taxed as heavily as short-term ones.

2. In a short sale, the period of time between the borrowing of securities and the return to their owner. That is, the holding period is the entire time elapsed for all the transactions of a short sale.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

holding period

The length of time during which a security is owned.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Holding period.

A holding period is the length of time you keep an investment.

In some cases, a specific holding period is required in order to qualify for some benefit. For example, you must hold US savings bonds for a minimum of five years to collect the full amount of interest that has accrued.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

holding period

(1) A time period important in the law of adverse possession,with its own peculiar rules for calculation. See adverse possession for more information. (2) A period of time one owns property, important in tax law for determining tax rates and benefits and for disallowance of some benefits.


• Property exchanged in a 1031 exchange by related parties has a 2-year holding period before it can be sold; otherwise there will be adverse tax consequences.

• Banks have a 21-day holding period before sending taxpayer bank deposits to the IRS pursuant to a garnishment.

• Property sold after a holding period of 1 year or less will result in short-term capital gains or losses.

• Property sold after a holding period of more than 1 year will result in long-term capital gains or losses.

• Property sold after a holding period of more than 5 years will result in super-long-term capital gains or losses.

• Property acquired by inheritance will be treated as if it were held for longer than 1 year.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Holding Period

The period of time property has been owned for income tax purposes. The holding period determines if gain or loss from the sale or exchange of a capital asset is long or short term.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
Dar did this in contradiction to PSX budget proposals for 2017-18 that urged the finance ministry to revise down the various CGT rates for different holding periods.
For example, it cited there was no CGT applicable on sale of immovable property provided the holding period was of three years or more.
* Deals of $1 billion or more underwent the biggest change in average holding periods since 2006, from a low of three years in 2008 to a high of seven years in 2014
Twin returns are sorted and target returns are computed for holding periods of 12, 18, and 24 months.
He said holding periods can range from 14 to 60 days, but that 21 days was normal.
Further, I will discuss about the formation and holding periods, and the methods of calculating average monthly returns in all of the constructed strategies for our analysis, in last part of this section.
"We see good opportunities as we look to grow our core investments but longer holding periods are definitely the order of the day.
If the two holding periods are met, then the gain will be considered long-term.
Target retirement funds which offer a diversified portfolio for a specified holding period have recently been offered by a number of investment advisory firms.
In contrast, Jegadeesh and Titman (1993) uncovered that strategies which buy past period winner-stocks and sell past period loser-stocks (momentum strategy) generate significant positive returns (about 1 per cent per month) for 3 to 12 month holding periods. The extended study of Jegadeesh and Titman (2001) reconfirms that momentum effect is not a result of data mining effort.
By comparison, a portfolio of core real estate funds alone produced 10-20% average annual returns in only 40% of rolling 5-year holding periods and losses in more than 20% Of 5-year holding periods.
* Keep track of five-year holding periods in all Roth accounts so advisors and clients know when clients can take qualified (tax-free) distributions from these accounts, and to avoid unintended taxable distributions or distribution complications.