How long should I reinvest to obtain capital gains?

Answer by  chrisshah (172)

Capital gains are defined as the total gains that you make on invested capital. I presume that you are asking this for taxation purposes. Capital gains are taxed as Short term if they have been held for less than one calendar year. If they are held for longer than one calendar year, all gains are taxed as long term.

Answer by  fesdre (655)

I would keep reinvesting until you are in need of the money. Why not have your money work for you. If it isn't, you will either spent it, lose it, or leave it in your mattress. I would reinvest until it made no sense not to reinvest anymore. Try it.

Answer by  richmiller3214 (138)

There is not a time limit for investing to obtain capital gains. Capital gains are only obtained when you sell a stock for more than you purchased it for or when you buy to cover a short trade for less than you sold it short for. Reinvesting doesn't produce capital gains, only trading stocks can do that.