Capital Gains

  • Definition: The profit realized from the sale of an asset, such as stocks, bonds, real estate, or mutual funds, which exceeds its purchase price. Capital gains can be short-term (if the asset is held for one year or less) or long-term (if held for more than one year). They are subject to taxation, with the rate depending on various factors, including the holding period and the investor’s tax bracket.
  • Alternate Term: Investment Profit, Appreciation Gain