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Chapter 17: Q.16 (page 426)

What is capital gain?

Short Answer

Expert verified

The profit made by selling securities is referred to as capital gain.

Step by step solution

01

Step 1.Concept of capital gain

Investing: the general population invests their money by purchasing various assets and then selling them for a profit.

02

Step 2. explanation

When the selling price of a capital asset (property, shares, stocks, bonds) is higher than the purchase price, the profit is called capital gain. It might be for a short or lengthy period of time, and it is taxed.

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Most popular questions from this chapter

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