Capital gain
Profit from selling an investment for more than you paid.
Why it matters
Short-term gains (held ≤1 year) are taxed as ordinary income. Long-term gains (held >1 year) are taxed at 0%, 15%, or 20% depending on income — a big incentive to hold appreciated investments for at least a year.
See also
Educational only — not financial, tax, or legal advice.