What is a long term?
"Long -term" refers to the longer period that kept an active one.Depending on the type of security, ALong-termAssets can be kept in just a year or for 30 years or more.In general, long -term investments are hired for persons who are often assumed, although there is no absolute rule.
Main learning points
- "Long -term" refers to the long -term period that held an active one.
- The time of a long -termactive is usually a security that is held for at least a year.
- "Long term" is a subjective expression that depends on the investor;However, to sell an active that is being held for less than a year, it will have various tax consequences than having kept selling after one year or more.
- Long -term investments are laid down at the assets side of the balance of a company as investments.
- Investments in the short term are marked with the market and any decrease in their value is recognized as a loss where increases are not recognized until they are sold.
Understand in the long term
"Long term" is one of these sentences that is so omnipresent in financing that it has become difficult to determine a certain meaning.Media often advise people to "invest in the long term", but it is very subjective to determine whether an investment is long -term.
INDay trader, for example, would define the "long-term", very different from a buy-and-team investor.For the day as traders, a long -term obligation would be a night of the night.For Buy-and-Team Investor can be considered slightly less than several years as a short-life.
Long -term investments for companies
An investment in the long term can be found at the asset -bales of a business salans that represents the company's investments, including shares, bonds,propertyAnd cash that it intends to take more than a year to take.
When a company purchases Istock or the debt investments from another company, this influences that they are in the short or long term, the way in which these assets are assessed in the balance sheet.
Investments are in the short termMarked on the market, and any decrease in their value that is recognized as a loss;However, increases increasing value, only until the item is sold.This means that classification of investments for so long or shortly a direct impact on the reported income for the company that has the investment.
Analysts ensure changes in long -term assets as a sign that a company can beliquidationTo cover the current costs;generally a problem when it continues.
Long -term investments for private individuals
Too many people who save and investretirementRepresents their most important long -term project.Although it is true that there are other costs that require a multi -year effort, such as buying a car or buying and paying a house, pension is the main reason why most people have a portfolio.In this case we are encouraged to start early and often invest.
Real estate is often considered an investment in the long term.Heighted people who buy a house usually sell it many years after they have bought it or they own it until the mortgage loan is fully paid.
Profitable effects that are sold after one year are subject toCapital gainsIn contrast to normal income tax for securities sold under one year.
Shares, investment funds andExchange -Traded Funds(ETFs) can either be long -term or short -term investment, depending on how long they are stored.A person can buy and sell a share if it appreciates within a few weeks or months.Conversely, the same stock can be stored and sold until it has appreciated even more.
Use of both long -term prospects and the powerCompound, individual investors can use the years they have and retires to take careful risks.When your time horizon is measured for decades, marketing and other risks can be taken for the long -term benefits of a higher general return.
What is considered as an investment in the long term?
Long -term investments are all effectsheld for more than a year, generally.
What are the characteristics of a long -term investment strategy?
An investment strategy in the long term is intended to keep an investment protection for one year or more.Sound -made by investment strategies are given a greater risk because of the unpredictability of future results.A security price.An investment in the long term must also be part of a diversified portfolio to reduce the volatility of the long term.
Is gold a good investment in the long term?
Gold has long been considered a good investment to discover against inflation, as well as a value of value;However, data has shown that both shares and bonds in the long term have surpassed average gold.Depending on the specific period, however, gold can surpass warehouses and bonds.
What are long -term tradable effects?
Resistable effects can be most investments, including shares, bonds and stock market funds (ETFs).Depending on the effects, are considered short -term assets and are expected to be sold in less than a year, usually a few months.These types of effects are usually liquid effects that can be easily sold because there are a large number of buyers.
Why are long -term effects less liquid?
Long -term effects are less liquid because they have to be held for a long time to make a profit.Sold quickly.Bigs with longer durations also have higher payments over time, but must be kept longer for a higher return.
