What is Capital Gains?

A definition of Capital Gains

“Capital gains are the profits earned from the sale of an asset, like stocks or real estate, where the selling price exceeds the purchase price.”

Capital Gains in Business Glossary - What is Capital Gains?

Business Glossary > What is Capital Gains?


Examples of Capital Gains in a Sentence:

Investors seek capital gains by buying stocks at a low price and selling them high.

Real estate can provide substantial capital gains if property values increase.

High capital gains can significantly impact an individual’s tax liability.

Why is Capital Gains Important in Business?

Understanding capital gains is vital for investors and taxpayers. Profits from capital gains can influence financial strategies and tax planning, as they are taxable and impact net investment returns.

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Associated Terms

Here are some associated business terms and synonyms for “Capital Gains”:

  • Investment Profit
  • Asset Appreciation
  • Value Growth

Apple’s Capital Gains

Apple investors experienced significant capital gains over the years as the company’s stock value rose due to innovation, product launches, and business success. This appreciation has resulted in substantial profit for long-term shareholders.

Final Notes on Capital Gains

When dealing with capital gains, consider their impact on tax obligations, potential reinvestments, and long-term financial goals. Careful planning can optimize benefits and minimize tax liabilities.


This has been a definition of Capital Gains meaning.

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