Traders who hold stocks for less than a full day can reduce the tax burden on their profits.

Name: Traders who hold stocks for less than a full day can reduce the tax burden on their profits.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Traders holding stocks for less than a day engage in day trading, which generates short-term capital gains taxed at the trader's ordinary income tax rate, not necessarily reducing the tax burden compared to long-term investments.

Traders Who Hold Stocks for Less Than a Full Day