First, understand the definition of “share gain” in the investment world. You purchase a share of common stock for $100. At some point in the future, you sell the share for $135. The basic gain is equal to the difference in the price you paid for the share and the price at which you sold it. Your basic gain is $35.

However, there are few transactions that are this simple that answer, “how to calculate share gain.” Just consider one factor: Taxes. If you bought this share today and sold it tomorrow, you might be taxed on the total share gain. Should you buy this stock today and sell it in fourteen months, you should be taxed using “capital gains” regulations. You might even have a “phantom gain” that, although not a true gain, sometimes incurs a tax.

Remember, unless you engage in online free stock trading activities, you’ll pay fees that may increase your cost price and lower your gain on the sales price. Always consult a qualified tax adviser before making any tax-driven decisions, as concerns are seldom this simple.

For your basic purposes, however, treat asset appreciation (share gain) as the difference between the price you paid to buy an investment and the price for which you sold it. Play valid stock market games, like the one at Wall Street Survivor, and get up to speed on the world of stocks with the Investing 101 online course. With these resources, you’ll learn to trade stocks profitably and record gains properly.