Capital Gain
Definition
Profit from selling an asset above its purchase price. Often taxed at a different (usually lower) rate than ordinary income.
Example
Buy a stock at $100, sell at $150 → $50 capital gain.
Profit from selling an asset above its purchase price. Often taxed at a different (usually lower) rate than ordinary income.
Buy a stock at $100, sell at $150 → $50 capital gain.