13 Explain the meaning of 'capital gain' in the context of shares.

[Sir Afzal Shad]

13 Explain the meaning of 'capital gain' in the context of shares. [3]

[Shaliza khawaja]

capital gain is the profit you get from selling your share for more then its purchase price
for example if someone buys shares for $80 and sells it for $180 the have capital gan for $100
this increases income and influences investment decisions this also influences how investors buy or sell shares in the future

[Subhan Zafar]

{KN}A capital gain is the profit an investor makes when they sell their shares for more than they originally paid for them.
{APP}For example, if an investor buys shares in Engro Corporation for Rs. 200 each and later sells them for Rs. 260 each, the Rs. 60 difference per share is the capital gain.
{AN}This gain reflects an increase in the company’s share price, often due to good financial performance, strong investor confidence, or positive market conditions.

[Naveen fatima]

[KN] A capital gain is the profit made when shares are sold for more than they were originally and bought for.
[APP] For example, If an investor buys shares for $10 each and later sells them for $15, They make a $5 capital gain per share.
[AN] This gives the investor a financial reward for holding shares, encourages them to invest more in the company and can increase overall confidence in the stock market as share value rises.

[Muaz Aamir]

KN: Capital gain means the profit an investor makes when they sell their shares for a higher price than they originally paid.

AP: For example, if someone buys shares in Tesla for $100 each and later sells them for $150, they make a $50 capital gain per share.

AN: This matters because investors can earn money even without receiving dividends. It also encourages more people to invest if share prices keep rising. Plus, it shows that the company’s

[Abdul Hadi]

KN: Capital gain is the profit a person makes on selling a stock at higher price than the original price.
APP: For example a person buys a stock for 100$ and sells them for 150$ this means that the capital gain for the stock is 50$.
AN: This allows the person to increase their wealth without using the income from dividends etc., the expectation of future growth attracts even more people making the stock highly attractive and raising demand for the company's stock, However if the share price falls instead the investors might face a capital loss which might influence future growth negatively.

[shamaim shakeel]

Knowledge Point:
A capital gain is the profit an investor makes when they sell their shares for a higher price than they originally paid.

Application:
For example, if an investor buys shares in UBL Bank for Rs. 100 each and later sells them for Rs. 150, they make a Rs. 50 capital gain per share.

Analysis:
This happens because the value of the company’s shares increased over time, often due to good performance or higher profits. Investors earn extra money from this rise in share value, which makes buying shares more attractive.

[areeshasaber]

[kn] capital gain is the profit made when you sell shares for more than you paid for them.
[app] for example, an investor buys shares for $200 and sells them for $300, the $100 is the capital gain.
[an] this increases the investors personal wealth, increases investment in the stock market and increases business confidence.

[sikander ali]

[KN]capital gain means the profit over the good sold as well as the dividend of the income earned by investing in a company or brand.
[APP]for instance a shares $10 and sold at $15 so the $5 is the capital gain [profit] of the shares sold sold likewise a business at the end of every month would give the dividends to the shareholders and the dividend earned by the shareholder is known as capital gain.
[AN]thus this shows that share price performance of a business can directly affect a investors return motivating more people to invest likewise promoting to hold them and sell on the right moment to make profit.

[LintaHassaan]

Capital gain is the increase in the market value of a share above its original purchase price.for eg a share was bought for £10 and is sold for £15 the capital gained is £5 .As a result the investors' income rises whixh leads to more funds being reinvested .hence the demand of shares is increased leading to higher prices and thus higher market value which ultimately then increases further potential capital gains .

[Shuraim Arif]

(KN) Capital gain is the increase in the price of shares of a business in a market.
(APP) For example, the share price of ABC ltd, operating in country A, may increase after the economic conditions have improved, which lead to higher disposable income of citizens. This is also known as capital gain.
(AN) This capital gain proves to be very beneficial for ABC ltd as each share that is sold to shareholders raises a higher amount of finance for the company, leading to more money being reinvested into the business and spent on other areas such as the R&D department. This would further lead to a larger consumer base and eventually, the growth of the business.

[Wahaj Ashraf]

[KN] A capital gain is the profit an investor makes when they sell shares for a higher price than they originally bought them.
[APP] If someone buys shares in a company at $20 each and later sells them at $30 they make a capital gain of $10 per share.
[AN] This gain rewards investors and can make shares more attractive as people hope to earn income not just through dividends but also through rising share prices.

[Tuqwa]

kn:a capital gain is the profit an investor makes when they sell shares for more than they originally paid.
app:forexample if an investor buys a share for $10 and later sells it for $15 the $5 difference is the capital gain.
an:This shows that investors can earn income not only from dividends but also from rising share prices which rewards them for holding successful company shares.

[Ayaan Fayaaz]

[Kn] A capital gain is the profit made when shares are sold for more than their original purchase price.

[App] For example, if an investor buys shares in Apple for $100 each and later sells them for $150, they make a $50 capital gain per share.

[An]This means the investor **earns extra income without receiving dividends**, **benefits from the company’s growth and rising value**, and **may choose to reinvest or sell for profit, increasing overall return on investment**.

[EmmanWaseem]

Capital gain in the context of share means the profit you gain after selling the product you have bought
For example, you bought a book of Rs50 but you sell it in Rs65,that means you have a profit of Rs15,that's what you have gained
This helps to increase revenue as there are increase in selling the products