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Capital Gain

A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor. Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price.

Capital gains may refer to "investment income" that arises in relation to real assets, such as property; financial assets, such as shares/stocks or bonds; and intangible assets such as goodwill.

Many countries impose a tax on capital gains of individuals or corporations, although relief may be available to exempt capital gains: in relation to holdings in certain assets such as significant common stock holdings, to provide incentives for entrepreneurship, or to compensate for the effects of inflation.

From Wikipedia under the GNU Free Documentation License
Tue Apr 17 17:34:02 2012

Noun

capital gain (plural capital gains)

  1. (economics) An increase in the value of a capital asset
  2. (business, finance) An amount by which the value or the proceeds of the sale of a capital asset by its owner exceed its cost to the owner.
Antonyms

From Wiktionary under the GNU Free Documentation License
Tue Apr 17 17:34:03 2012


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