Capital gains

Tax on the change in value when you sell an investment, after you already own it.

is generally the difference between what you sell a stock for and your . A capital loss is when you sell for less than basis.

After , selling shares may trigger or loss on any price change since , not on the full sale amount if value was already taxed as wages.

Holding period matters: sales within one year of are often short-term; longer holds may qualify for long-term rates. Rules depend on your facts and filing status.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.