Melinda,
A capital gain, by definition, is the monetary gains on an investment when an investor sells, and the principal has increased in value.
Therefore, any money you make as a result of SELLING something. For example, if you bought one share of stock (company doesn't matter) for $1 per share, and the price soars to $100 per share, then you sell it, you will have gained $99. Therefore, when you calculate your total taxable income (when filing your taxes), you will be required to report that $99 as a capital gain.
Hope this helps.
:-)
Binder
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