The profit earned when an investment or asset is sold for more than its purchase price.
Capital gains arise when you sell stocks, bonds, real estate, or other assets at a profit. They're taxed differently depending on how long you held the asset.
You can offset capital gains with capital losses and deduct up to $3,000 in net losses per year from ordinary income.
The yearly cost of borrowing money expressed as a percentage, including fees and interest.
Interest calculated on both the initial principal and the accumulated interest from previous periods.
The process of spreading loan payments over time so each payment covers both principal and interest.
A ratio measuring the gain or loss from an investment relative to its cost, expressed as a percentage.
The total value of all assets minus all liabilities, representing overall financial health.
The ownership value in an asset after subtracting any debts owed against it.