A capital gain is an increase in the value of a capital asset, such as stocks or real estate, that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. Capital gains may be short-term (held for less than one year) or long-term (held for more than one year) and are typically taxed accordingly. Investors aim to maximize their capital gains through various investment strategies, including buying low and selling high.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.