this question should be answered in two situations: one view is: after buying for a few days, it will be sold, and the holding time will not exceed one month. It must be that the holding time will be one month to six months after short-term buying, or a band of the market, that is, the holding time will be more than one year after the usual mid-line buying, or it will be a long-term operation for a long time, but the overall holding ratio will remain unchanged. This view is the perspective of analysis. As far as individuals are concerned, they can only refer to the dual view that the constant pursuit of buying low and selling high ultimately leads to the standard selling high and selling low. Because of the constant losses in the investment process, their investment time cannot be very long, and they will be cleared up sooner or later. It is because of the lack of strict operational discipline that can bring profits to short-term investment that the net investment value has never increased, but the losses are not much. Therefore, his investment behavior has not brought necessary benefits. Whether or not to continue the investment transaction depends entirely on personal interests. Because of the strict operation discipline and excellent after-hours work, the mid-line investment is profitable every month, at least every year. Because of the constant profit, its investment will not be disturbed by any factors. Unless he really doesn't want to invest, there must be no reason to leave. He is a standard long-term investment. The specific content of long-term investment Long-term stock investment is to buy and hold common shares and preferred shares of other companies. When it is obtained in cash, it is based on the valuation cost at the time of acquisition (including purchase price, commission and taxes, etc.); When it is acquired by non-cash transaction, it shall be priced according to the fair market price of the traded goods or acquired stocks. The valuation methods for obtaining long-term stock investment include cost method, lower of cost and market price method, equity method and market price method, which are selected according to the different influences of the invested enterprise on the invested enterprise. Cost method: Long-term stock investment is always carried out according to the acquisition cost. If the following two conditions are met, it must be priced according to the cost method: investors cannot exert significant influence on the financial and business strategies of the investee. When the investment amount is less than 2% of the ordinary shares with voting rights and the preferred shares with voting rights issued by the invested enterprise, it is generally considered that the investor is unable to exert significant influence on the financial and business strategies of the invested enterprise, so the cost method should be used. If the investor has evidence that it can exert a significant influence on the investor, even if the investment ratio is less than 2%, the cost method cannot be adopted, but the equity method should be adopted. Evidence that can show that it can exert a significant influence on the investors includes: 1. Being able to represent the board of directors; 2. Participate in formulating policies; 3. Major inter-company transactions; 4. Exchange of managers; 5. Technical dependence; 6. Ownership ratio related to other shareholding forms. If the investment ratio exceeds 2% but there is evidence that the investor cannot exert significant influence on the investee, the cost method should be adopted instead of the equity method. The evidence that can't exert significant influence on the investee includes: 1. The investee restricts the investor's ability to exert significant influence through legal proceedings or government management authorities; 2. The investor and the investee reach an agreement, and the investor waives the important rights of the shareholders; 3. Most of the rights and interests of the investors are concentrated in the hands of minority shareholders who control the evacuated investors; 4. In order to adopt the equity method, the investor tried to obtain but failed to obtain financial information beyond the normal range of shareholders; 5. The investor tried to represent but failed to represent the board of directors of the investee. Ordinary shares are not negotiable if they are not traded on national stock exchanges or active over-the-counter markets. According to the cost method, when the investor receives the cash dividend, it is recognized as income, but not as the income of the investee; However, the book cost of "long-term investment" should be reduced in the following two situations: 1. The market value of long-term investment is much lower than the cost, and it is permanently falling; 2. The investor receives the liquidation dividend, that is, the dividend received exceeds the investor's accumulated share of income. The lower of cost and market price method: the method of confirming long-term investment according to the lower of cost and market price on the balance sheet date. There are two conditions for long-term investment to adopt the method of lower cost or market price: 1. Investors cannot exert significant influence on the financial and business strategies of the investee; 2, can flow, that is, in the national stock exchange or over-the-counter market can be obtained at any time sales price or condition price and asking price. The difference between it and the cost method lies in whether the invested stocks can be circulated. In daily accounting, the basic procedure is basically the same as the cost, except that the long-term investment is reported according to the lower of the cost and market price on the day of table preparation. It should be noted that if an enterprise obtains short-term and long-term common stock investments, it should make all short-term investments into one portfolio and all long-term investments into another portfolio, and the law of lower cost or market price should be applied to two different portfolios respectively. So that when the value of the portfolio changes, it is not necessary to adjust each single account that constitutes the portfolio, but to adjust the book value of the portfolio to a lower market level through a valuation allowance account. When comparing the total amount, if the market price is higher than or equal to the cost, the allowance account should be adjusted to zero, and if the cost is higher than the market price, the difference between them should be included in the allowance account. If the market price of long-term investment portfolio falls below the cost temporarily, it is considered as unrealized market price decline. Unrealized price decline recorded in the long-term investment allowance account is listed as long-term investment and owner's equity reduction in the balance sheet respectively, and shall not be listed as loss in the income statement. In the long run, the short-term decline in market prices is likely to be offset by future price increases. Unrealized depreciation in a certain period is determined by subtracting the opening balance from the ending balance of the allowance account, and the ending balance is the difference between the book cost at the end of the long-term investment and the market price. If the ending balance is greater than the opening balance, increase the unrealized depreciation; On the contrary, reduce unrealized price decline. If you sell a stock in a long-term investment and realize a profit or loss, this profit or loss has nothing to do with the allowance account because the method of lower cost or market price is based on the total amount. If the market price of a stock but not a portfolio falls irreversibly and permanently, the book cost of long-term investment should be reduced and the realized loss should be confirmed. This decline has nothing to do with the allowance account, but when comparing the cost of long-term investment with the market price according to the total amount at the end of the period, it is compared according to the adjusted cost. Equity method: a method to confirm the value of long-term stock investment according to the proportion of equity and the income of the investee. If the investor owns enough common shares of the investee to have a significant impact on the management of the investee, the equity method should be adopted to value the long-term stock investment. Its conditions of use are just the opposite of the cost method (see cost method), which embodies three requirements: recognizing the important economic relationship between the investor and the investee and reflecting the requirements of accrual basis; Reflect the changes in the rights and interests of the investee. The investor's cash demand, income and income tax may all affect the dividend policy of the investee, so its dividend reward does not represent the actual return of the investment. In order to fully reflect the income that investors should enjoy, the accounting procedures of the equity method are as follows: 1. When obtaining long-term investment, it is priced according to the actual cost at the time of acquisition; 2. At the end of each accounting period, adjust the long-term investment according to the profit or loss of the investee and the investment proportion; 3. Write off long-term investments when receiving dividends. The long-term investment account of the investor shall be in the proportion of the equity of the investee. If the cost paid by the investor is higher than the corresponding net asset value, it means: 1. Compared with the price paid by the investor, the assets of the investee are estimated; 2. The investee has an unrecorded goodwill. On the contrary, if the investor's cost is lower than the corresponding net asset value, it means that the investee's assets are overvalued relative to the price paid by the investor. In case of the above two situations, the investor should adjust the "long-term investment" account to make its book value commensurate with the investor's rights and interests. Market price method: a method of valuing long-term investments at the current market price. Like the market price method of short-term investment, it is used in all enterprises, and it is mostly used in * * * mutual funds, insurance companies and securities firms after being revised by industry practices. Under the market method, unrealized gains and losses (the difference between the book cost of long-term investment and the market price) should be confirmed and reported in the income statement. Long-term bond investment bonds purchased and held by other companies, financial institutions or governments. Its accounting method is the same as short-term investment (bonds). The discount premium arising from the difference between the coupon rate and the actual yield of bonds shall be amortized within the maturity of bonds, and the straight-line method and the actual yield method of amortization are the same as those of bonds payable. When amortizing the premium, the long-term investment will be offset, and the difference between the actually received interest and the amortization amount of the premium will be recognized as investment income; Increase the long-term investment when amortizing the discount, and confirm the sum of the actual interest received and the amortization amount of the discount as investment income; When selling long-term bond investments before the maturity of bonds, we should first adjust the interest income and amortization of premiums and discounts of bonds, and then calculate the profit and loss of selling bonds. The calculation method is: income from bond sale-book value of long-term bond investment-bond interest receivable. [Note] No.115 public morality issued by FASB in 1993 divides debt and stock investment into three categories; Held-to-maturity securities, trading securities and Avaibable-for-sale securities. Class I securities are priced at amortized cost; The latter two securities are priced at fair value.