I figure our advantage as individuals is that we aren't stuck to any time frame for keeping a stock. I typically hold a position between 6-18 months and if is a good company I will keep some of my profit in free shares that I can hold for a longer time frame (5-10 years).
You will get a form from the brokerage. If you hold for less than 1 year you pay income tax on the gains, if you hold for over you pay capital gains. This is last time I looked and I'm no tax expert so please verify on your own.