Capital Gains
A capital gain is the profit earned when an investor or trader sells assets like shares, commodities, futures, options, or currencies for more than their purchase price. Essentially, it’s the gain on invested capital—thus the term 'capital gains.' For example, if someone buys a share for Rs. 1000 and sells it for Rs. 1100, the capital gain is Rs. 100. Taxation on these gains depends on the asset type and holding period. In India, short-term and long-term capital gains are taxed differently, with rates varying based on the asset and duration before the sale.
Related Terms
Lumpsum
A lumpsum investment is a one-time investment of a significant amount into a mutual fund,...
Buy and Hold
Buy and hold is a long-term investment strategy where investors purchase stocks or other assets...
Block Trade
A block trade is a large buy or sell order for a stock, commodity, or...
Issuer
An issuer is the company that sells its shares to the public for the first...
Dividend Stripping
Dividend stripping is a strategy where an investor buys a company’s stock just before the...
Flipping
Flipping refers to the act of buying and quickly selling an asset to make a...
