Capital Gains Explained

A capital gain is any profit that comes about from investing in capital resources

Such as bonds, stocks, or real estate, and the profit is greater than the acquisition cost. Another way of saying the variance between a purchase price lower than selling price that realizes a financial reward for an investor. on the other hand, a capital loss comes about when the sale proceeds of capital assets are lower than the initial price.

Capital gains might also refer to "investment earnings" that take place in relationship to actual assets, such as real property; intangible assets like goodwill and financial assets, similar to shares, bonds or stocks. A majority of countries enforce a capital gains tax on corporations or individuals, although help may be obtainable excepted capital gains: with relation to ownership of particular assets such as sizeable holdings of common stock, to provide inducements towards entrepreneurship, or to offset for inflation effects. Feb 15, 2011

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