What is Capital Gain

[Nomad]

If you are investing in something in a hope to sell it later to make profits, you need to understand what exactly is capital gain. Let’s say, you invested in stocks for $10 and you sold the stocks when the price went to $20, you made a $10 capital gain. You will have to pay taxes on your capital gain. However, instead of selling, you just take the dividends, which is passive income, you will pay lesser taxes

 

[eLdavis]

If i understand Correctly, which means you don't have to sell the whole stock, but simply take out the profit?

 

[Suba]

The term capital gain is not only applied to stock investments but to all commodity assets. Capital gain is a financial profit (the opposite of capital loss) obtained from the difference between the purchase price and the selling price of an investment instrument. Capital gains will only be realized if the asset has been sold at a selling price higher than the sale price. There are two types of capital gains that we know, namely short term and long term.