- 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.
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.
- ^ Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 268, 508. ISBN 0-13-063085-3. http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4.
Wikimedia Foundation. 2010.
Look at other dictionaries:
capital gain — see gain Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. capital gain … Law dictionary
capital gain — ☆ capital gain n. profit resulting from the sale of capital investments, as stocks, real estate, etc … English World dictionary
capital gain — /ˈkapital ˈɡein, ingl. ˈkæpɪt(J)lgeIn/ [loc. ingl., propr. «incremento di capitale»] loc. sost. m. inv. (econ.) plusvalenza, guadagno in conto capitale … Sinonimi e Contrari. Terza edizione
capital gain — ► NOUN ▪ a profit from the sale of property or an investment … English terms dictionary
capital gain — a financial gain made from selling fixed assets such as land, buildings, or a business at a price above the original purchase price. Glossary of Business Terms When a stock is sold for a profit, the capital gain is the difference between the net… … Financial and business terms
Capital Gain — 1. An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term… … Investment dictionary
Capital gain — When a stock is sold for a profit, it s the difference between the net sales price of securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss. The New York Times Financial Glossary * * *… … Financial and business terms
capital gain — plusvalenza E la plusvalenza, o guadagno in conto capitale, realizzata in occasione della vendita di un attività finanziaria. E la parte del rendimento totale ascrivibile alla differenza tra prezzo di acquisto e prezzo di vendita. Secondo la… … Glossario di economia e finanza
capital gain — For income tax purposes, a gain realized only from sale or exchange of capital assets. A taxable gain is conditioned upon the presence of a claim of right to the alleged gain and the absence of definite obligation to repay or return that which… … Ballentine's law dictionary
capital gain — The gain on the disposal of an asset calculated by deducting the cost of the asset from the proceeds received on its disposal. Under capital gains tax legislation the chargeable gain may be reduced by taper relief (or by indexation if the asset… … Accounting dictionary