© 2014 Shmoop University, Inc. All rights reserved.
 

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Capital Gains

Definition:

There are basically 2 forms of tax - ordinary income (think: high rates) and capital gains (think: less high rates). Generally, if you hold a stock a year or more and it appreciates, you have a capital gain. The idea is to reward people for investing money rather than spending it by giving them a lower tax rate.

Advertisement
back to top