Capital gain and capital loss are two terms that refer to the difference between the purchase price and the sale price of an asset.
Capital gain is the profit that results from selling an asset for a higher price than the purchase price. For example, if you bought a stock for $100 and sold it for $150, you would have a capital gain of $50.
Capital loss, on the other hand, is the loss that results from selling an asset for a lower price than the purchase price. For example, if you bought a stock for $100 and sold it for $80, you would have a capital loss of $20.
Capital gains and losses can occur with any type of asset, including stocks, bonds, real estate, and other investments. They are typically subject to taxation in most countries. In some countries, capital gains are taxed at a lower rate than ordinary income, while in others, they are taxed at the same rate. Capital losses can be used to offset capital gains, reducing the amount of taxes owed.