Question : What is meant by "Capital Gains"?
Option 1: Part of the profits added to the capital
Option 2: Appreciation in the money value of assets
Option 3: Additions to the capital invested in a business
Option 4: None of these
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Correct Answer: Appreciation in the money value of assets
Solution : The correct answer is appreciation in the money value of assets .
The term " capital gain" refers to the profit or rise in the value of a capital asset when it is sold or transferred for more than its initial purchase price. Stocks, real estate, bonds, collectables, and enterprises can all be capital assets. The difference indicates the capital gain when you sell a capital asset for a higher price than you paid for it.
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