Capital gains

Capital gains are the difference between what you paid for an asset and what you received when you sold it. If you bought sharesTermStock×السهمA share of ownership in a company, bought and sold on a stock exchange, that may pay dividends and rise or fall in value.Open the term for SAR 1,000 and sold them for SAR 1,500, your capital gain is SAR 500. The same applies to property, bonds, cryptocurrency, or any asset you hold and later sell at a higher price.

Capital gains are a primary way wealth grows through investing. When you hold an asset that rises in value, you have unrealized gains on paper. The moment you sell, those gains become real money in your account, and this is where tax treatment becomes relevant to your household finances. The tax you owe on capital gains varies by jurisdiction and by how long you held the asset, which affects the net amount you actually keep. For investors building wealth over time, understanding the difference between your sale price and your cost basis determines whether a transaction was profitable in real terms after tax.

• Capital gains are calculated from your cost basis (what you paid) to your sale price, not from the asset's current market value.
• Realized gains occur when you sell; unrealized gains exist only on paper until you sell.
• The tax treatment of capital gains can differ significantly depending on how long you held the asset and the jurisdiction where you are taxed.
• In Shariah-compliant investing, capital gains from sukukTermSukuk×الصكوكA security representing ownership of a share in a real asset or project, not a debt owed by the issuer.Open the term or Islamic equity funds follow the same principle: profit on sale is the difference between purchase and sale price.