Trading
Capital Gain
Price Appreciation
Definition
Profit from selling an asset for more than you paid
Explanation
A capital gain occurs when you sell a stock for more than your purchase price. Buy at $50, sell at $75 = $25 capital gain. Along with dividends, capital gains are the two main ways to make money from stocks. Note: capital gains may be taxed.
Example
Buy at $100 → Sell at $150 = $50 capital gain