What Are Gains?

Gains are increases in the value of an asset or investment. Gains can be realized, meaning that they have been converted into cash, or unrealized, meaning that they remain as potential profits on paper. Realized gains occur when a person sells their assets for more than what was originally paid for them; this is known as capital gain. Unrealized gains refer to the increase in value of an asset without it being sold; these are also referred to as paper profits and do not result in any actual money until the asset is sold at a later date.

Gains can come from investments such as stocks, bonds, mutual funds and real estate. They may also arise from other activities such as gambling or speculation on commodities markets. In addition to providing financial returns through increased values of assets held by investors, gains can also provide tax benefits depending on where you live and how long you hold your investments before selling them off again.

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