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If you hold the stock a shorter amount of time and then sell it to a...

If you hold the stock a shorter amount of time and then sell it to a long term investor, how does that impact the original investor's return?

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Answer #1

The original investor would be having short term capital gain or loss depending on the levels he sold to the long term investor.It however does not effect the long term investor in any manner whatsoever. Since, he was holding the stock for a short period of time , he might have lost the opportunity of earning higher capital gains, in case the stock he was holding had the possibilities. of providing higher returns . The long term investor due to his long time horizon, may have benefited in the form of higher capital gains than the short term investor. However both hold independent positions one is the seller an another is buyer and their returns does not impact each other in any ways whatsoever.

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