1. The amount by which proceeds from the sale of a capital asset exceed the cost basis. 2. In real estate and investments, the difference between the purchase price and the sale price when the sale price is more. When an investor buys an asset and sells it for a higher price, they incur a capital gain. In the United States, Capital Gains are taxed at a lower rate than other income if the asset is held for longer than one year. An investor may use capital losses to offset gains to minimize their taxes.
1. The outlay of money, for example, by depositing it in a bank or buying stock in a company, with the object of making a profit. 2. An amount of money invested in something for the purpose of making a profit. 3. Something such as a company, endeavor, or object that money is invested in with the goal of making a profit. 4. A contribution of something such as time, energy, or effort to an activity, project, or undertaking, in the expectation of a benefit. 5. A purchase, especially something that somebody should be able to use for a relatively long time (informal.) 6. The outlay of money that a company’s existing buildings, equipment, and materials are equivalent to.