Capital Gain - Business concept of the day
Business Development
316 week ago — 1 min read
Definition: Capital gain is a rise in the value of a capital asset (investments in money/capital markets or real estate) that yields a higher value than the purchase price.
Example: If you bought a stock at $100 (p0 – price on day when you buy) and sold it at $150 (p1 – price on day when you sell), the capital gain will be calculated by [(p1-p0)/p0]x100. Using this formula will give you capital gain of your investment as 50%.
Business Insight: A Capital Gain is not realised until the asset is sold. Capital gains are often subject to taxation depending upon the statutory tax laws of different countries.
Posted by
GlobalLinker StaffWe are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.
Network with SMEs mentioned in this article
View GlobalLinker 's profile
SME Inspirations
Most read this week
Comments (8)
Please login or Register to join the discussion