Capital gain
profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price
Capital gain is an economic concept defined as the profit earned on the sale of an asset that has increased in value over the holding period. An asset may be tangible property, a car, a business, or intangible property such as shares.
A capital gain is when the selling price of the asset is greater than the original purchase price. In the event that the purchase price exceeds the sale price, a capital loss occurs. Capital gains are often subject to taxation, of which rates and exemptions differ between countries. The history of capital gain originates at the birth of the modern economic system and its evolution has been described as complex and multidimensional by a variety of economic thinkers. The concept of capital gain may be considered comparable with other key economic concepts such as profit and rate of return, however, its distinguishing feature is that individuals, not just businesses, can accrue capital gains through everyday acquisition and disposal of assets.
History
The history of capital gain in human development includes conceptualizations from pre-1865 slave capital in the United States, to the development of property rights in France in 1789, and even other developments much earlier. The official beginning of a practical application of capital gain occurred with the development of the Babylonian's financial system circa 2000 B.C. This system introduced treasuries where citizens could deposit silver and gold for safekeeping, and also transact with other members of the economy. As such, this allowed the Babylonians to calculate costs, sale prices and profits, and hence capital gains.
Begin with the source’s own compact description: “Capital gain” is profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price. The dossier treats that line as a proposition to test through Capital, gain and profit, not as a finished interpretation.
Why this record matters
The phrase “profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price” supplies a clear boundary for inquiry. It also exposes the unanswered questions: who defined that boundary, when it became stable and which sources sit outside it.
Place names and jurisdictional language are key evidence: both can reveal earlier catalogue descriptions and overlooked record series. The source revision retrieved here is dated Sep 20, 2026. The linked authority identifier is Q1850816. None of the 0 selected statements returned an explicit reference. The first chronological checks are 1865, 1789 and 2000.
Architectural summaries often privilege surviving fabric and can understate demolished phases, contested use or displaced communities. The source lead contains qualifying language; that uncertainty should survive quotation, summary and reuse. Authority statements aid reconciliation but still require their own references, qualifiers and ranks to be checked.
How to read it
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Three-step research path
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Questions for further research
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This entry incorporates text from “Capital gain” on English Wikipedia. Contributors are listed in the page history. Text is available under the Creative Commons Attribution-ShareAlike 4.0 License. Selected authority identifiers and statements are retrieved from Wikidata under CC0; their references and qualifiers remain part of the verification path.