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Unraveling the Mysteries of Complex Investment Terms – A Guide for Real People

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Capital Gain Capital gain is the profit you make when you sell an investment for more than you paid for it. If you buy a bike for $100 and sell it for $150, your capital gain is $50. “Cap” stands for capitalization, which is the total value of the company’s stock.

Taxes 98
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What is a Certificate of Deposit (CD) and How Do They Work?

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Traditional CDs are insured by the FDIC for up to $250,000 per account, making CDs a very low-risk investment. With CD laddering, you can create a flexible investment strategy that allows you to take advantage of the interest rates of long-term CDs, while also gaining access to your capital on a regular basis. Predictability.