Capital gain

Updated: Aug 20, 2021

An increase in the value of an asset. This is the difference between the present value and the price at which the asset was purchased. If the general price level is stable, real and nominal capital gains are equal. If there is general inflation of prices, capital assets show reed gains only if their prices increase proportionally faster than the general price level, and assets with constant money values suffer real capital losses.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.