Capital gain/(loss)

(1) The gain to investor from selling a stock, bond or mutual fund at a higher price than the purchase price. The capital gain is usually the amount realized (net sales price) less your investment (adjusted tax basis) in the property. A capital gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.
(2) The difference between the sales price of a capital asset, such as an exchange-traded fund, mutual fund, stock, or bond, and the cost basis of the asset. If the sales price is higher than the cost basis, there is a capital gain. If the sales price is lower than the cost basis, there is a capital loss. Short-term capital gain refers to a gain on assets owned for one year or less. Long-term capital gain generally refers to a gain on assets owned for more than one year. Net capital gains generated by a fund from the sale of securities in its portfolio are distributed to shareholders.