Zoho Bookings & SalesIQ Alignment

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Holding Period

Meaning: 

The Holding Period refers to the total duration that an investor keeps an investment before selling it. It begins on the purchase date and ends on the sale date. In simpler terms, it is the time you hold onto an investment.


Example:
For instance, if you buy a stock on January 1, 2024, and then sell it on January 1, 2025, your holding period would be 1 year.

How to understand Holding Period:

The holding period is essential for determining the type of tax you will pay on any profits made from your investment.
A longer holding period usually reduces the risk of losing money because it allows for more time for the investment to grow.

Importance of Holding Period:   

It helps investors plan their investment strategies, whether they are trading for the short term or investing for the long term.



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