Finance
What is Capital gains?
A capital gain is the profit you make when you sell an asset — like stocks, property, or crypto — for more than you paid. Many countries tax these gains, often at different rates depending on how long you held the asset.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains capital gains.
Key things to understand
- 1It's the profit from selling an asset above its cost.
- 2Applies to stocks, property, crypto, and more.
- 3Often taxed, sometimes at special rates.
- 4Holding longer can mean lower tax in some countries.
Frequently asked questions
- What are capital gains?
- The profit earned when you sell an asset for more than you paid for it.
- What's the difference between short- and long-term capital gains?
- Short-term gains are on assets held briefly; long-term gains (held longer) are often taxed at lower rates.
- Do you pay tax on capital gains?
- In many countries yes, though rates and exemptions vary, and losses can sometimes offset gains.