Capital gain

A capital gain is the positive difference between the sale price of an asset and its purchase price. It is realised that, at the moment, the asset is sold for a value higher than the one at which it was bought.

The concept applies to different types of assets, including financial instruments and crypto-assets. Until the asset is sold, any increase in value remains only potential (referred to in this case as an unrealised gain).

In many jurisdictions, capital gains are subject to taxation, with rules that vary by country and asset type. The tax treatment of crypto-assets depends on the applicable regulation and may change over time.

Disclaimer: This entry is for information purposes only and does not constitute tax or investment advice. For your specific situation, you should refer to official sources or to a professional.

Correlated words

Indicator

An indicator is a technical-analysis tool that processes historical price or volume data to describe a market's past behaviour.

Financial Instrument

A financial instrument is a contract that grants financial rights, such as shares, bonds or derivative products, to its holder.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Bonds

Bonds are debt securities through which an issuer raises capital, committing to repay it together with a form of remuneration.

Deficit

A deficit is the situation in which, over a given period, outflows exceed inflows, resulting in a negative balance or shortfall.

Default

A default is a debtor's failure to meet the payment obligations arising from a debt or a financial instrument such as a bond.

CPI

The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Commercial Bank

Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.

Central Bank

The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.