Capital Gains (and Tax)
The profit from selling an asset for more than you paid; it is often subject to capital gains tax.
A capital gain is the difference between the sale price of an asset, such as shares, crypto, or property, and its original purchase price. The gain is only realized, and usually only taxable, when you actually sell. Many countries tax capital gains, sometimes at lower rates for assets held longer, or exempt them after a minimum holding period. Understanding the rules helps you time sales and keep more of your return. Assetli tracks the cost and current value of your holdings so you can see unrealized gains at a glance.
Example
You buy shares for $5,000 and sell them for $8,000. Your capital gain is $3,000, which may be taxable depending on how long you held them and local rules.
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Related terms
Stock (Share)
A share of ownership in a company that entitles the holder to a portion of its profits and assets.
ROI (Return on Investment)
A measure of profit relative to the amount invested, expressed as a percentage.
Dividend Yield
The annual dividend payment of a stock or fund expressed as a percentage of its current price.
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ETF (Exchange-Traded Fund)
A fund that holds a basket of assets (stocks, bonds, or commodities) and trades on a stock exchange like an individual stock.
Dollar-Cost Averaging (DCA)
An investment strategy of regularly investing a fixed amount regardless of market price, reducing the impact of volatility over time.
Compound Interest
Interest earned on both the initial principal and the accumulated interest from previous periods, creating exponential growth over time.
FIRE (Financial Independence, Retire Early)
A financial movement focused on aggressive saving and investing (often 50–70% of income) to achieve financial independence and the option to retire decades earlier than traditional retirement age.
Net Worth
The total value of all your assets (cash, investments, property) minus all liabilities (loans, mortgages, credit card debt).
Asset Allocation
The strategy of dividing investments among different asset classes — stocks, bonds, real estate, cash — to balance risk and return according to your goals and risk tolerance.