When a trader sells an asset at a lower price than they initially paid for it, they have incurred a capital loss. As such, the capital loss is the opposite of capital gain: the profit made when an asset is sold for more than originally paid.

 

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Capital gains tax (or CGT), is the tax levied by the government on the profits made from financial asset sales. CGT regulations and levels vary from country to country.

 

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Capital expenditure, or CAPEX, is the term used for the money spent by businesses on physical assets. It’s an important part of understanding a company’s accounts.

 

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