Capital Gains
Capital gains are profits realized from selling an asset at a higher price than its purchase cost. These gains are subject to taxation, and the rates can vary depending on how long the asset was held. Capital gains are a key driver of investor returns in equity markets, private equity, real estate, and venture capital, where asset appreciation plays a significant role in overall portfolio performance.
Key Takeaways
- Profits earned from selling assets above purchase price.
- Key driver of investor returns in multiple asset classes.
- Subject to capital gains tax rates.
- Important for portfolio growth and performance.