How are gains from equity investments calculated?

by Dr. Gaurav Sinha , Mr. Vinay Kohli · Unit 71 of 100

Capital gains are determined by comparing the purchase price of an investment with its selling price after considering applicable costs such as brokerage, taxes, and transaction charges. The holding period may influence how gains are classified under prevailing tax regulations. Accurate record-keeping helps investors calculate gains correctly and meet tax reporting requirements.

How can you evaluate an Initial Public Offering (IPO)? What does owning shares in a company represent?