what does holding period mean 
holding period means the time a security was held for it begins when the investment is purchased and ends when it is sold can holding period return be negative yes not all investments generate a profit even a stock that pays a dividend could deliver a negative holding period return if it depreciated in value the bottom linea holding period return is the total return you received from holding an asset or collection of assets you essentially subtract the price you initially paid from the price you sold the security add any income paid and then divide the sum by the initial value the holding period of return is usually expressed as a percentage meaning you then multiply the total by 100 knowing the holding period return makes it easier to compare returns between investments that s especially the case for investments held for different periods of time 