capital gains
The profit you make when you sell something like a stock or investment for more than you paid for it. The government often taxes this profit at a different rate than your regular paycheck income.
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Words beside it
- Capital gain
The profit from selling an asset for more than its basis. Taxed differently depending on holding period and account.
- Capital gains tax
Tax on profit from selling something. Lower rates if you held it more than a year.
- gains
Gains are the money you earn on top of what you originally put into an investment or savings account, like the growth your money makes over time.
- Working capital
Current assets minus current liabilities. Roughly, the cash cushion available to run day to day operations.
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