Capital gain, or capital gains

A capital gain is the profit earned from selling an asset, such as stocks, real estate, or other investments, at a higher value than it cost to buy. It’s the positive difference between the selling price and the initial cost of the asset or equity. Capital gains can be either short-term (held for less than a year) or long-term (held for more than a year). Depending on the country of residence (of the investor), capital gains can be taxed, usually with different rates for short-term and long-term gains.