what is capital profit?
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Capital Profit also called Capital gain is an economic concept defined as the profit earned on the sale of an asset which has increased in value over the holding period. ... A capital gain is only possible when the selling price of the asset is greater than the original purchase price.
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Capital Profit is a capital gain which arise from the sale of capital assets such as stock, bond, real estate etc., where the sale price exceeds the purchase price. Premium is the difference between selling price and face value of shares. It is of non- recurring nature. So, it is capital profit.
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