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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use