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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Capital Gains
The difference between the cost basis and the amount for which you sold the stock

Capital Gains and Losses

• For tax purposes, the difference between the purchase price and selling price.
• Profit or loss that occurs when an investor sells an asset. If the asset's sale price is greater than the original purchase price, a capital gain results. If the asset is sold for less than the original price the investor experiences a capital loss.

Certificate of Deposit
An arrangement between an investor and a financial institution which calls for the financial institution to pay a specific rate of interest over a set period of time. Certain deposits are FDIC insured up to applicable limits.

Common Stock
Units of ownership that give voting rights to shareholders. (See Preferred Stock.)

Consumer Price Index
a measure that examines the weighted average of prices of a fixed basket of consumer goods and services (such as food, transportation, shelter, utilities, and medical care), and is widely used as a cost-of-living benchmark.

Consumer Sentiment Index
a statistical measurement of consumers/investors opinions of the overall health of the economy.

Cost Basis
The purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes.

Cyclical Stocks
Stocks whose earnings fluctuate according to the business cycle.