Shares have the potential to increase in value over time. When we buy shares in a company, we are essentially owning a part of the business. Over time, the business can have growth in their profits when their business expands. Hence, the value of our ownership in the business will also increase resulting in a growth in share price. This growth in share price is known as capital growth and if we sell the shares, the profit earned is termed as “capital gains”. In the event if we sold the shares at a lower price than the price we got it for, it will result in a “capital loss”. When buying Singapore stocks, there is no income tax due on sales of shares as there is no capital gains tax.