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
- Capital LossThe loss you take when you sell an investment for less 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.
- Wash SaleSelling an investment at a loss and rebuying it within 30 days, which cancels the tax benefit of that loss.
- Capital GainThe profit you make when you sell an investment for more than you paid for it.
- Taxable AccountA standard investment account with no special tax breaks, where gains and dividends are taxed each year.
- Cost BasisThe original amount you paid for an investment, used to figure out your taxable gain or loss when you sell.
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Plain-English education — not personalized legal, tax, or investment advice.