Finance Dictionary : Capital Gain

Capital Gain


Explore Capital Gain – realized profit from selling assets above the purchase price. Learn its significance in investments and potential tax implications.



Capital gain is the realized profit derived from the sale of an asset at a price exceeding its initial purchase cost.


A capital gain signifies the financial benefit attained through the sale of an asset at a price surpassing its original acquisition cost. This financial gain results from the difference between the asset’s selling price and the amount initially invested in its purchase.


Capital gains are prevalent in various investment categories, including stocks, real estate, and other forms of property. They play a pivotal role in investment strategies, as they contribute to the overall return on investment and can be a primary driver of wealth accumulation.


Capital gains may be subject to taxation, depending on the duration of ownership and the specific tax laws governing the transaction.


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