Capital gains is best described as:

A) The increase in the market value of current assets.
B) The increase in the market value of long-term capital assets.
C) The increase in value of shareholders' equity.
D) The increase in value of a firm's intangible assets.
E) The growth in value of investments that were purchased at a lower price than the amount sold.

Capital Gains

Capital gains arise from the sale of an asset at a price higher than its purchase price, resulting in a profit.

Market Value

The current price at which an asset or a service can be bought or sold in an open market.

Investments

Assets purchased with the expectation that they will generate income in the future or appreciate in value for future resale.