Money in Real Life · 45 sec
Capital gain
A practical idea for making clearer everyday money decisions.
The useful idea
- The useful idea
Capital gain is an economic concept defined as the profit earned on the sale of an asset that has increased in value over the holding period.
- How it works
An asset may be tangible property, a car, a business, or intangible property such as shares.
- Why it matters
A capital gain is when the selling price of the asset is greater than the original purchase price.
Why this matters
Use Capital gain to compare the trade-offs before committing money.
Try this
Use Capital gain to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Capital gain?
- Why it matters
- How it works
- The useful idea — correct
Capital gain is an economic concept defined as the profit earned on the sale of an asset that has increased in value over the holding period.
General education only — not personal financial advice.