Under current tax law, the longer an investor waits to sell an inflated stock, the lower is the present value of the tax liability.

Name: Under current tax law, the longer an investor waits to sell an inflated stock, the lower is the present value of the tax liability.
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Quizplus · Accepted Answer

This is because the longer an investor holds an asset, the more their cost basis is adjusted for inflation, which reduces the capital gain subject to taxation. This is known as the "tax deferral benefit" of long-term investments.

Under Current Tax Law, the Longer an Investor Waits to Sell