A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Short-Term Capital GainProfit on an investment held a year or less, generally taxed at your ordinary income rate.
- Capital GainThe profit you make when you sell an investment for more than you paid for it.
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Cost BasisThe original amount you paid for an investment, used to figure out your taxable gain or loss when you sell.
- Holding PeriodHow long you own an investment before selling, which determines whether gains are taxed as short or long term.
- Taxable AccountA standard investment account with no special tax breaks, where gains and dividends are taxed each year.
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Plain-English education — not personalized legal, tax, or investment advice.