The purchase price is what an investor pays for a security. It is the main component in calculating the returns achieved by the investor.

Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how ...

When an investment you purchase increases in value, you have an unrealized gain until you decide to sell it, at which point you have a realized gain. Conversely, if an investment you own declines in ...

— -- Q: What's the easiest way to calculate capital gains and losses on stocks I sell? A: Calculating capital gains belongs on a long list of things that used to be important in people's ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Return on investment (ROI) measures the amount of ...

Issue: A grantor sells an appreciating asset to an irrevocable grantor trust in return for a promissory note. If the trust converts to a non-grantor trust because he grantor dies while the note is ...

Bonds don't get as much attention in the investing world as stocks do, but they play an equally important function in investment portfolios. The predictable cash flows that bonds offer stand in stark ...

QI bought my first house in 1950 for $45,000 and sold it in 1990 for $500,000. My basis for tax purposes was $50,000. I took advantage of the once-in-a-lifetime exclusion of capital-gains tax on ...

Understanding capital gains tax is crucial for business owners and investors looking to optimize their tax strategy when selling business assets. Whether you’re selling business property, investment ...

The federal tax rate on cryptocurrency capital gains ranges from 0% to 37%. Your specific tax rate primarily depends on three factors: 1 / The accounting method used for calculating gains. 2/ How long ...