Definition
Capital gain is the profit realized from the sale of an asset at a price higher than its purchase cost. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Capital gain on the board and restates it: “Profit realized from the sale of an asset at a price higher than its purchase cost.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Capital gain as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Capital
Financial resources available for investment in business operations and growth.
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Capital Appreciation
Increase in the value of an investment over time, excluding dividends or interest.
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Capital Budgeting
Process of evaluating and selecting long-term investment projects for a company.
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Capital Cost
Cost of funds used to finance a business, including debt and equity expenses.
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