Investor Glossary-gainInvestor Glossary-gainInvestor Glossary-gainInvestor Glossary-gainInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Gain

The HTML to link to this page
 

A gain is an increase in the value of an investment or asset. A gain is typically expressed in monetary terms (e.g. a gain of $10 or a percentage gain). A gain is typically calculated by taking the current market value or sales price and subtracting the original purchase price (i.e. basis). The difference is the profit or gain for that transaction. In some cases, the original cost of the investment/asset may have increased (e.g. insurance reimbursements) or decreased (e.g. insurance costs, commissions, interest and maintenance) and the investor may have to adjust its purchase cost (i.e. adjusted basis) to calculate the taxable capital gain. A gain is one of the major objectives for investors along with income (e.g. interest, dividends). Gains are unrealized if the asset is retained and realized when the asset is sold. Unrealized gains are also referred to as paper gains, which might turn into losses if the asset's value drops before its sale. Any gain realized upon the sale of an asset, known as a capital gain, is usually subject to taxation. The Internal Revenue Service taxes gains differently depending on the length of time the asset was held by the entity realizing the profit.



Rate this gain definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 144a, debt service coverage, Zero Cost Collar, per diem, FICO score, class C shares, in escrow, EBITDA, 401a, command economy, deferred revenue, current ratio, reverse mortgage, wholly-owned subsidiary, phantom income, dividends payable, annual return, stock split, balance sheet, APR, required rate of return, VIX, labor relations, LIBOR, FTSE, stock market close, 1035 exchange, real GDP, cancelled check, covered put, liquidity ratio, Key Rate Duration, diluted share, limit order, quality assurance, ex-dividend date, inflation, ex-dividend, average price per share, retained earnings, risk management, option premium, irrevocable trust, implied volatility, 1031 exchange, open position, margin rate, minority interest, deferred tax


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use