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Capital Gain




The profit realized when a capital asset is sold for a higher price than the purchase price.

Your costs (when you buy) include the commission you paid your broker and are deducted from the proceeds when you sell.


Additional Comments:

In a mutual fund, capital gains are created when the fund buys and sells securities. These gains are then distributed to shareholders at least annually.

Shareholders can also earn capital gains by redeeming their units at higher prices than they originally paid.

Related Terms:

Dividend
When companies pay part of their profits to shareholders, those payments are called dividends. A portion ...

No Load Fund
Mutual Fund offered by an open end investment company that imposes no sales charge (load) on ...

Speculative Stocks
Speculative stocks have the potential for above-average returns, but they also carry above-average risk of loss ...





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