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Trading and Investment Terminology

Long-term investment

Investments which are kept for more than one year are known as long-term investments. The timeframe for long-term investment is different for different individuals or companies. Like for the purpose of capital gain tax long term is 1 year. But most of the investors consider long-term between 3 and 10 years. Buying land is an example of long-term investment. Bonds, bond funds, stocks which are held for more than a year are considered a long-term investment. In companies� balance sheets long-term investments are kept on the asset side. Long-term investments represent the investments of companies� in real estate, stocks, bonds, etc. which the company is going to hold for more than a year. Usually, long-term investments such as bonds are held to maturity while equity securities which do not have a maturity date are held for over a year.

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