Capital loss

Updated: Aug 20, 2021

The opposite of capital profit but calculated for most purposes in the same manner. For tax purposes capital losses can be set off against capital gains. A fact often ignored, particulariy by the tax collector, is that apparent profits or losses may be quite illusory. This happens frequently in the present-day market where the continuous fall in the value of money causes assets to appreciate in cash price while their value, calculated in terms which ignore the effects of inflation, may have remained conslant or even have fallen.

Reference: The Penguin Business Dictionary, 3rd 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.