Gain (electromagnetics) financial definition of Gain (electromagnetics)
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An increase in price
. For example, if a stock
opens at $10 and closes
at $12, it is said to gain $2. Likewise, if one buys a house for $200,000, and its value is later assessed $325,000, the house has gained $125,000. See also: Capital gains
, Paper gain
The excess of the amount received as opposed to the amount expended in a transaction. For example, receipt of $4,500 from the sale of an asset with a book value of $3,000 results in a gain of $1,500. Compare loss
The profit on the sale of an asset.One may realize gain,as when property is taken in condemnation, but not recognize gain for tax purposes until a later date. When reading tax advice, it is extremely important to differentiate between these two concepts, as authors sometimes assume that all readers understand the difference.
The excess of the amount realized from a sale or exchange over the adjusted basis of the property sold or exchanged.