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Holding period

Also called: holding period

In one line

The length of time you've owned shares, which determines tax treatment and, for restricted stock, when you can resell.

In plain English

How long you've held matters twice over: it sets whether gains are long- or short-term for tax, and under Rule 144 it governs when restricted shares become resellable.

If you were explaining it to a 5-year-old

A stopwatch on how long you've kept your toy — reach certain marks and you unlock a tax discount or the right to sell.

Why it matters when you sell

Tracking your holding period tells you both the tax you'll owe and, sometimes, when a sale even becomes possible.

Related terms

Long-term capital gainsRule 144Qualifying dispositionQualified small business stock (QSBS)

Put it to use

RSU tax calculator

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Sources

Primary references for this term: IRS (US tax). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.