Capital Gain Or Loss
A capital gain is the profit earned from selling an asset at a higher price than its purchase price, while a capital loss occurs when an asset is sold for less than its purchase price. Capital gains are subject to taxation, depending on the holding period and other factors. On the other hand, capital losses can be used to offset capital gains, reducing the overall tax liability. This strategy, known as tax-loss harvesting, helps investors minimize taxes by balancing gains and losses in their portfolio.
Related Terms
Bear Market
A bear market is a period characterized by a sustained decline in the stock or...
Equity Shares
Equity shares refer to the ownership units of a company, issued through an Initial Public...
Free Cash Flow
Free cash flow (FCF) in accounting and earnings reports represents the cash a company retains...
All Or None Order
An all-or-none (AON) order is an instruction to execute a trade only if the full...
Bracket Order
A bracket order is an intraday trading tool that combines three legs of orders to...
Compounded Annual Growth Rate (CAGR)
The Compound Annual Growth Rate (CAGR) indicates the average annual return an investment generates over...
