Okuzeka
Investing & the Stock Market vocabulary · Portfolio & Risk

Capital gain

Meaning in investing & the stock market, with examples

/ˌkæpɪtl ˈɡeɪn/nounCore term

In investing & the stock market, capital gain means: The profit you make when you sell an investment for more than you paid for it. If you sell for less, the result is a capital loss.

In Turkish: sermaye kazancı, alım satım kazancı, değer artış kazancı

How it is used

Used in investment reports and especially in tax rules. A gain is realised when you sell and unrealised (on paper) while you still hold the asset. Investors talk about capital gains versus income from dividends and interest; many countries tax them differently.

Example sentences

  1. She made a capital gain of 40,000 lira when she sold the shares.

  2. Most of the fund's return came from capital gains rather than dividends.

Common collocations

  • realise a capital gain
  • capital gains tax
  • unrealised capital gain
  • capital loss
  • returnThe gain or loss on an investment over a period, including price changes and any income such as dividends or interest, usually shown as a percentage.
  • dividendA part of a company's profit that it pays to its shareholders, usually in cash and usually a fixed amount for each share.
  • profit-takingSelling investments after their price has risen in order to turn paper gains into real cash, which can cause a short fall in prices.
  • portfolioAll the investments that one person or organisation owns, such as shares, bonds, funds and cash, seen together as a whole.

More terms: Portfolio & Risk

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This page explains English vocabulary for learners. It is not financial advice.