A capital gain or loss on an investment that was held for less than some minimum amount of time (often a year and a day). A short-term gain usually results in a higher tax rate than a long-term gain.
Gain or loss on the sale or exchange of a security (including mutual fund shares) that has been held 1 year or less. Short-term capital gain distributions from mutual funds are reported as ordinary dividends on Form 1099-DIV, box 1a.