Answer: Capital gain
Explanation:
Capital gain is the return that a person gets when they sell their shares for a higher price than what they bought it for. It is a capital gain because the money they invested (capital) increased and brought back more than they spent.
The reverse is called a Capital loss.
Example of Capital gain:
You buy stock in 2019 for $40 and sell it in 2020 for $100. Your capital gain is:
= 100 - 40
= $60
