What is Capital Gain in the Stock World? This is the Calculation and How to Get It

YOGYAKARTA - In the world of stocks, there are many types of profits that investors can get, one of which is called capital gain. The term comes from English which, if interpreted freely, means capital gain. This article will discuss what capital gain is, which is nothing more than a stock investor's profit.

What is Capital Gain?

In a scientific article entitled Dividend and Capital Gain Policy: Its Effect on Stock Prices written by Lisa Kustina in the Journal of Investment, it is explained that capital gain is the investor's profit obtained from the sale of shares in the secondary market. It is said to be a profit if the selling price is above the purchase price.

Capital gain can also be understood as the difference in the price obtained in the current period's shares with the previous period. capital gain profits are obtained by short-term stock sales or trading.

For example, you buy PT DS shares on the BEI at a price of Rp1000 in December 2024. In February 2025, the price of PT DS shares turned out to be up to Rp1,300. If you sell PT DS shares, you will get a difference of Rp300, - per share. This difference is called capital gain.

Types of Capital Gains in Shares

Capital gains are divided into two types based on their time period, namely as follows.

Short-term capital gains

This type of investor is bent on the profits obtained by investors after holding shares in a short period of time, namely less than one year.

Long-term capital gains

This profit refers to the profit obtained by investors after selling shares that have been stored for a long period of time or more than one year.

Tips to Get Capital Gains in the Stock Market

The way to get capital gains is to buy shares at a lower price and then sell them at a higher price. To achieve that, investors can do many strategies as below.

Buy low-priced stocks by paying attention to timing

Timing is the key to getting shares at a lower price. If you are able to get the timing of the purchase, capital gains will be very easy to get. To determine the timing, investors must be able to do various stock analyses.

Sell shares at high prices by paying attention to market momentum

Not only getting shares at a low price, investors also need to monitor stock movements. If the stock crawls up, immediately sell to get capital gains.

Focus on long-term investment

If you are a beginner stock investor, try to focus on long-term investments. Choose blue-chip stocks from reputable and trusted companies. Long-term investments will help investors get bigger and more stable capital gains.

That's the information related to what is capital gain. Visit VOI.id to get other interesting information.

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