Taxable Gain

See: Realized Gain. See: Unrealized Gain.

Generally speaking, gains are taxable only when you convert them into cash. You could have bought NFLX at the IPO for about a buck a share, or thereabouts, splits adjusted...and have gains of hundreds of dollars. But they wouldn't be taxed today. Not unless you sold the stock, and realized a gain. It would then be taxable at long-term investment gain rates, cheaper than at ordinary income rates.

Time to invest and chill.