Capital Gain
The profit made when you sell an investment for more than you paid.
A capital gain is the profit realized when you sell something for more than it cost. In a taxable account like a UTMA, capital gains can have tax consequences, though a child's low tax bracket sometimes opens the door to tax-gain harvesting. Gains aren't 'real' for tax purposes until you actually sell.
Explain it to your kid
"The profit you make when you sell for more than you paid."
Related words
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