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Definition: The money gained when a stock appreciates (goes up). For example, if you owned 10 shares of stock that you paid $15 for and it went up to $30, you would have $150 in capital gains.
StockJargon Advice: Capital gains are where you'll make the majority of your money if you invest in common stock. Some people think you make most of your money from dividends. That's wrong.
It's also important to realize that you'll have to pay taxes on the capital gains you receive. This is called a capital gains tax. However, if you hold the stock for a while, you might qualify to pay a reduced capital gains tax called the "long-term capital gains tax." It's yet another benefit of buy and hold investing!
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