Question

What is capital gain?

Short answer

The profit made by selling securities is referred to as capital gain.

Step-by-step solution

Step 1.Concept of capital gain

Investing: the general population invests their money by purchasing various assets and then selling them for a profit.

Step 2. explanation

When the selling price of a capital asset (property, shares, stocks, bonds) is higher than the purchase price, the profit is called capital gain. It might be for a short or lengthy period of time, and it is taxed.