ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: Capital gain is the profit one earns on the sale of an asset like stocks, bonds or real estate. It results in capital gain when the selling price of an asset exceeds its purchase price. It is the difference between the selling price (higher) and cost price (lower) of the asset.

Detailed explanation-2: -Capital gains are profits from selling assets such as stocks, real estate, bonds, and other investments. If you sell the investment at a price higher than your basis-what you paid for it-it’s a capital gain.

Detailed explanation-3: -There are three main measures of profit. These are gross profit, operating profit and net profit.

Detailed explanation-4: -If you sell an asset for more than you paid for it, your profit (minus your cost basis) is called a capital gain. Short-term capital gains are profits from selling assets you own for a year or less.

Detailed explanation-5: -A gain refers generally to the positive difference between the price of something at acquisition and its current price. A net gain takes transaction costs and other expenses into consideration. A gain may also be either realized or unrealized.