CAPITAL GAIN

1. A boost in the worth of a capital asset (real estate or investment) that provides it a greater value than the purchase amount. The improvement is not appreciated until the asset is merchandised. A capital gain may be long term (more than a year) or short term (a year or less) and must be collected on income taxes. A capital loss is obtained when there is a downgrade in the capital asset worth in comparison to an asset's purchase amount.
2. Earnings that results when the amount of a security possessed by a mutual fund increases above its buying worth and the security is merchandised (realized gain). If the security remains to be held, the gain is unappreciated. A capital loss would take place when the opposite occur.

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