Capital Gains

Capital gains refer to the profit earned from selling an asset, such as stocks, real estate, or other investments, at a higher price than you paid for it. For example, if you buy a stock for $1,000 and later sell it for $1,200, your capital gain is $200. These gains are usually subject to taxes, depending on how long you’ve held the asset and local tax laws. Capital gains are a key concept in investing, representing the reward for successful asset appreciation over time.