If a stock is held for less than 12 months, any gain in value is taxed as ordinary income.

Name: If a stock is held for less than 12 months, any gain in value is taxed as ordinary income.
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Quizplus · Accepted Answer

A long-term capital gain takes place when an asset is held for more than a year, and the maximum tax rate is 15%. Held less than one year, the sale is a short-term gain or loss, and is taxed at ordinary income rates, which, in most cases, will be higher than 15%.

If a Stock Is Held for Less Than 12 Months