Capital gains means :

Question

Question

This question was previously asked in

UGC NET Paper 2: Economics July 2018 Shift 2

Answer 1

The correct answer is An increase in the value of an asset.

Key Points Capital gains:

A capital gain is an increase in an asset's or investment's value as a result of the asset's or investment's price appreciation.
In other terms, a gain happens when an asset's current or selling price exceeds its original purchase price.
All kinds of capital assets, including but not restricted to stocks, bonds, goodwill, and real estate, are attributed with capital gains.

Important Points Classifications of Capital Gain:

Capital gain can be realized or unrealized.
The realized gain is the gain from the final sale of an asset or investment.
Conversely, an unrealized gain arises when the current price of an asset or investment exceeds its purchase price, but the asset or investment is still unsold.
Realized capital gains are usually classified as short-term gains or long-term gains.
Short-term (capital) gains occur if an asset or investment was held for less than a year.
Long-term (capital) gains are gains from an asset or investment that was held for more than one year.