capital-gains

Vocabulary Word

Definition

'Capital gains' involve selling something, like a house or stocks, for more than what you paid for it. It's the financial gain you make between the price you sell something for and the price you bought it for.

Examples in Different Contexts

For real estate, 'capital gains' are the profits from selling property at a higher value than it was bought. A real estate agent might explain, 'Capital gains on property can be significant, especially in booming markets.'

Practice Scenarios

Business

Scenario:

Our stocks have increased significantly in value. It could be an excellent opportunity to divest.

Response:

Yes, we could sell some of our stocks to realize our capital gains.

Economics

Scenario:

Given the current economic boom, many are seeing high profit from their investments. It's interesting how it influences the wealth distribution.

Response:

Indeed, capital gains can create larger income disparities, especially during economic booms.