capital gain

Definition

Profit realized from the sale (disposal) of a capital asset, or from holding it during aperiod when its market value is increasing. Such gains usually attract capital gains tax.

Use capital gain in a sentence

  • After purchasing a real estate property to flip, the developer posted a largecapital gain after selling the property for a much higher price than the original purchase price.
Term of the Day

analyst

An employee of a bankbrokerageadvisor, or mutual fund who studiescompaniesand makes buy and sell recommendations, often specializing in asingle sector orindustry. Analysts use a wide variety of techniques forresearching and makingrecommendations. The reports and recommendations they publish are often used by tradersmutual fundmanagersportfolio managers and investors in their
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Usage Example
Many investors and traders use the reports that analysts produce before making any investing decisions.

Notable Quotable
"The IPO market is never in equilibrium. It's either too hot or too cold. Buy in the cold periods." 
-Jay Ritter