IGCSE, A Level Business Student Forum

[KN]A capital gain in the context of shares means the profit an investor makes when they sell a share for more than they paid for it
[APP]If someone buys a share for £10 and later sells it for £15, the capital gain is £5 per share.
[AN]Hence if a company performs well this can lead to a higher demand for its shares. As demand increases, the share price goes up, creating the opportunity for capital gains.

(KN)Capital Gain is the markup price an individual receives when selling his/her shares in a business.
(APP)For instance, if a person pays $0.25/share and then later sells for $1/share, the capital gain will be $0.75/share.
(AN)This in turn helps shareholders identify which businesses are worth investing in, helping them make better investment decisions, allowing them to maximize their dividend value.