Financial Planner Tyler Conley gives a definition of capital gains and the difference between short-term and long-term capital gains in this Finance Moment.
When you sell an investment for more than you paid for it, the result is a capital gain. Investment assets which are subject to capital gains include stocks, bonds, precious metals, jewelry, and real estate. The tax a person pays on this capital gain depends on how long the asset was held prior to selling it. Capital gains can be classified as either long-term or short-term and are taxed accordingly.
Tyler also shares information about an investment tax known as the net investment income tax and who generally it applies to and what government program it helps fund.