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Capital gain |
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Capital gainThe gain in value that the owner of an asset experiences when the price of the asset rises, including when the the currency in which the asset is denominated appreciates. Contrasts with capital loss.Capital gainWhen a stock is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.Capital gainThe amount chargeable to capital gains tax (CGT) from gains made on the disposal of an asset. In the case of stocks and shares, your gain is the difference between the proceeds of selling the shares and the amount you paid for them adjusted for indexationIn calculating the acquisition cost, you can include including broker commissions and stamp duty. Depending on when you bought the shares, the base cost can be increased through the indexation allowance - a good thing from a tax point of view because the higher your acquisition cost, the lower your chargeable gain.In calculating the disposal proceeds, you can deduct commissions and other charges incurred in the process of selling.Whether you have to pay Capital Gains Tax on the chargeable gain will depend on whether you have already used up your annual exemption (the amount of gains you can make in any one year without paying CGT), and on the level of your other gains or losses in the tax year.Taper relief, which reduces the rate of tax you pay on gains, may also be available, depending on how long you have held the shares at the time you sell them.Similar MatchesOpportunity cost of capitalOpportunity cost of capitalExpected return that is forgone by investing in a project rather than in comparable financial securities. Perfect capital marketPerfect capital marketA market in which there are never any arbitrage opportunities. Capital assetsCapital assetsAssets, purchased as a long term investment for generating profit, such as buildings, plant and machinery and fixtures etc. Recapitalization proposalRecapitalization proposalOften used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor. Morgan Stanley Capital International (MSCI)Morgan Stanley Capital International (MSCI)This firm publishes a number of well known benchmarks, such as the MSCI World Index. Further SuggestionsPortfolio capitalCapital turnover Incremental cost of capital Pecking order view (of capital structure) Morgan Stanley Capital International World Index Capital intensive Complete capital market Long Term Capital Gain Capital augmenting capital asset pricing model Small capitalization (small cap) stocks Cost of capital Paid in capital Capital control Short term capital gain Capital gains tax Efficient capital market Short-term capital flow market capitalisation Core capital Crony capitalism capital expenditure Human capital Capital account Issued share capital |
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