Long term means how long




















And they might not have to wait that long to show their political heft. The plan is to stretch it out as long as possible, then probably forget about it, and then suddenly remember it.

It was a decayed house of superb proportions, but of a fashion long passed away. Ages back—let musty geologists tell us how long ago—'twas a lake, larger than the Lake of Geneva. I hate to be long at my toilette at any time; but to delay much in such a matter while travelling is folly. So he bore down on the solemn declaration that she stood face to face with a prison term for perjury.

New Word List Word List. For or extending over a long time. Designating or of a bond, capital gain, etc. Designating memory involving facts and events over a long period of time or over a lifetime. Over or for a long period of time. Alternative spelling of long-term. Becoming evident after a relatively long time period. Extending over a relatively long time period.

For the buy-and-hold investor, anything less than several years may be considered short-term. A long-term investment is found on the asset side of a company's balance sheet, representing the company's investments , including stocks, bonds, real estate, and cash, that it intends to hold for more than a year.

When a firm purchases shares of stock or another company's debt as investments, determining whether to classify it as short-term or long-term affects the way those assets are valued on the balance sheet. Short-term investments are marked-to-market, and any declines in their value are recognized as a loss.

However, increases in value are not recognized until the item is sold. This means that classifying an investment as long- or short-term has a direct impact on the reported net income of the company holding the investment. Analysts look for changes in long-term assets as a sign that a company may be liquidating to cover current expenses—generally a problem if it continues. For many individuals, saving and investing for retirement represents their main long-term project.

While it is true that there are other expenses that require a multi-year effort, such as buying a car or buying and paying off a house, retirement is the main reason most people have a portfolio. In this case, we are encouraged to start early and invest often. Using both a long-term outlook and the power of compounding, individual investors can use the years they have between themselves and retirement to take prudent risks.

When your time horizon is measured in decades, market downturns and other risks can be taken for the long-term rewards of a higher overall return. Income Tax. Investing Essentials. Mutual Fund Essentials. Advanced Technical Analysis Concepts. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.

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