Capital gains

Also called: capital gain, capital gains tax, long-term capital gains

The profit from selling an asset, such as stock or property, for more than it cost. It is taxed, often at a different rate than wages.

For example: A founder sells shares for more than she paid for them, and the difference is a capital gain.

Connects to 4

Opportunity zone Concept
Exit Concept
83(b) election Concept
Equity Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.