Capital Gain

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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.

 

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