Taxes
Capital Gain
The profit from selling an investment for more than you paid for it.
In more detail
Capital Gain is one of the foundational terms in taxes. Understanding it clearly helps you read financial documents, compare products, and avoid the kind of small misunderstandings that compound into expensive mistakes.
An example
Imagine you are evaluating a typical financial product where this concept appears. Knowing exactly what capital gain means lets you ask the right follow-up questions, compare two options on an even footing, and choose what is best for your circumstances rather than what sounds best in marketing copy.
Related terms
- Capital Loss — The loss from selling an investment for less than you paid, often deductible against gains.
- FICA — Federal Insurance Contributions Act taxes funding Social Security and Medicare, split between employer and employee.
Definitions are general and educational. Specific products and laws vary by country and provider — confirm with the issuer before making decisions.