capital loss

capital loss definition - finance
The cost of selling an investment for a price that is less than its purchase price. To be considered a capital loss, and not an ordinary loss, the investment must have been held for one year or longer. Capital losses can offset capital gains in order to reduce the amount of the taxpayerÂ’s overall bill.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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