The correct answer is OD. An increase in the value of an investment.
A capital gain refers to the profit earned from the increase in the value of an investment. It occurs when the selling price of an asset, such as stocks, real estate, or bonds, is higher than its purchase price. When an individual or entity sells an investment for a higher price than what they initially paid for it, they realize a capital gain.
For example, let's say you purchased shares of a company's stock for $10 each. After a period of time, the value of the stock increases to $20 per share. If you decide to sell the shares at this higher price, you would realize a capital gain of $10 per share.
It's important to note that capital gains are typically subject to taxation, depending on the tax laws and regulations in the specific jurisdiction. The tax rate on capital gains may vary based on factors such as the holding period of the investment and the taxpayer's income level.