Capital Gain Definition

A capital gain is the profit realized when an asset is sold for more than its original purchase price.

What is a Capital Gain?

Capital gains can be short-term or long-term depending on how long the asset was held.

They are a core measure of investment performance alongside income such as dividends or interest.

Buying a stock at $40 and selling it later at $55 produces a capital gain of $15 per share.

A candlestick chart is a price chart that displays the open, high, low, and close for a period using a body and wicks.

Capitalization, or market capitalization, is the total market value of a company's outstanding shares.

A carry trade is a strategy that involves borrowing in a low-interest-rate currency to invest in a higher-yielding currency or asset.