LeoGlossary: Capital Gain (Loss)

An increase in value of an asset or investment above the price that was purchased. The difference between the new value and the purchase price is the gain.

A capital loss is the reverse. If the asset or investment decreases in value, below what was paid, the difference is a loss.

Capital gains and losses often carry with it tax implications.

They are often broken down into two categories:

Short-term: assets held less than a year
Long-term: assets held more than a year

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