What is the period of possession?

When investing circles, a period of possession is a term used to describe the time when the investor either holds or is assumed to have specific security. This type of holding period can be used in long positions and short positions. The term is also used in banking situations and is used to identify the time that occurs between the receipt of the deposit and when it is actually published on the customer's account and is available for download.

With a long position, the posture period begins when the investor settles or completes the purchase of security. The period continues until the sale of security is completed to another investor. The same general approach is used in terms of defining a short position. In this scenario, a period begins when an investor or a short retailer borrows security and ends when the security is sold back or returned to the owner. In both cases, it identifies the period of possession that has safety and thus determines who is able to realize the return from this safeof the way.

Defining a period of possession is not only important to find out who benefits from moving ascending in the security value; Also, the defined time frame can be determined who is responsible for paying taxes from any revenue or who can require a loss if the security is reduced. As a result, documented the initial and end of the period very important, since the generated profit or loss may have a significant impact on the total tax accounting of all investments made within the same time frame. For example, if one asset generates a significant return during this period of possession and the other asset will publish a loss, the total tax debt of the investor will decrease during this period.

Holding period can be defined in terms of Calendary year or some other specified time frame. For example, the period may begin on January 1 and ends 31 December of the same year. The period may also define a rowFor consecutive months, for example from May to November. The exact configuration of the period will depend on when the asset is obtained and when it is released to another investor.

Banking is referred to as a provisional contribution between the receipt of the deposit and when this deposit is published on the customer's account. This is important because banks often distinguish between the acceptance of the deposit and when these funds are made available, based on the time of the time of the time when the deposit is made. For example, the deposit received in the afternoon does not have to be published on a customer account until the next working day. Understanding what normal interim deposits is to make it easier for the holder of the account to know when these funds will be available for selections.