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If an investor holds shares of company for more than one year then this type of investment is termed as long term investment and is exempted from tax whereas if an investor trades shares frequently then that is termed as trading and one has to pay tax for the profits arising from the trading.
<span class=”inline_editor_value”><span class=”rendered_qtext”>Long term investors will be looking for stable growth over the span of many years and decades even. Whereas short term investors will be looking for exponential growth over a few months or quarters.</span></span>
<span class=”inline_editor_value”><span class=”rendered_qtext”>In the other word,</span></span><span class=”inline_editor_value”><span class=”rendered_qtext”>With trading one tries to make profit from short term fluctuations in a market place. Investment aims to gain income or capital growth through the fundamental performance of what the asset represents (with stocks it is the profitability and prospects of the company).</span></span>
Investments are long positions where you can hold your shares for long period and sell but trading is a short positions where you can buy and sell frequently.
Investment is buying stock and holding it for long time before selling ,probably over a year or more.
Trading is buying stock and selling it within a day or somedays or few months.
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