What is the difference between profits and capital gains?

Answer by  BobSXLemon (110)

Profit is the difference between money coming in (takings) and money going out (costs). Capital gains are made when an asset that is purchased increases in value, so that the sale price is higher than the purchase price. This is how investments are typically expected to perform. Capital gains are taxed differently to encourage investment.

Answer by  LeheckaG (1826)

Profits are income less expenses for the current-period (as determined by GAAP Generally-Accepted-Accounting-Practices; either operating, pre-tax, after-tax, ...) Capital-gains reflect (usually the most-conservative after-tax measure of) profit per share.