If a Stock Is Held for Less Than 12 Months

question 68

True/False

If a stock is held for less than 12 months, any gain in value is taxed as ordinary income.

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Definitions:

Debt-To-Equity Ratio

This measures a company’s financial leverage by dividing its total liabilities by its stockholders' equity, indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Balance Sheet

An overview statement that provides details on a company's assets, liabilities, and stockholders' equity at a precise moment.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in its net income or loss.

Debt-To-Equity Ratio

An economic indicator reflecting the comparative levels of debt and shareholders' equity utilized in financing a company's assets.