What Is Capital Gain?
Definition and plain-English explanation of "Capital Gain"
A capital gain is the profit you make when you sell an investment for more than you paid for it. If you buy a stock at $50 and sell at $80, your capital gain is $30 per share. Gains on assets held less than a year are 'short-term' and taxed at higher ordinary income rates; gains on assets held longer are 'long-term' and taxed at lower rates.
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