The time for which an investor holds on to a security is known as the holding period.
The period during which an investment is attributable to a particular investor is the holding period. In the long term it is the time period between the purchase and sale of a security.
Points to remember:
A holding period helps to determine the taxing procedure of a capital gain or loss.
A long term holding period is a period greater than one year.
Example: If you sell a stock of RELIANCE is sold after a year then the time for which it is held in your demat account is known as holding period.