Listen to a Business English Dialogue about Long term gain
Keith: Hey Maya, do you know what a long-term gain is in finance?
Maya: No, I’m not familiar with that term. Can you explain it to me?
Keith: Sure! A long-term gain is a profit made from selling an asset that was held for more than a year.
Maya: Oh, I see. So, it’s like making money from an investment that you’ve held onto for a while?
Keith: Exactly! Long-term gains are usually taxed at a lower rate compared to short-term gains, which are profits made from selling assets held for less than a year.
Maya: That’s interesting. Are there different types of assets that can result in long-term gains?
Keith: Yes, assets like stocks, bonds, real estate, and mutual funds can all potentially generate long-term gains if held for more than a year.
Maya: Got it. How do long-term gains benefit investors?
Keith: Long-term gains can provide a more stable source of income and can also help investors build wealth over time through compounding.
Maya: Thanks for explaining, Keith. It’s good to know about the potential advantages of long-term investing.
Keith: No problem, Maya. Long-term investing can be a key strategy for achieving financial goals.