What term describes the profit made from selling a stock?

The term that describes the profit made from selling a stock is "capital gain." Capital gains arise when an investor sells a stock for a higher price than what they originally paid for it. This concept is fundamental in investing, as it reflects the value appreciation of an asset over time.

For example, if you purchase shares of a company for $50 each and later sell them for $70 each, your capital gain would be $20 per share. This profit is recognized when the asset is sold, distinguishing it from other forms of income generated by investments.

Regarding the other terms, equity return is a broader term that encompasses all earnings from an equity investment, including both capital gains and dividends. Dividend income specifically refers to payments made by a company to its shareholders out of its profits, which is separate from the profit earned from selling stocks. The term stock profit is not a standard financial term used to describe the profit made on the sale of stocks. Therefore, "capital gain" is the precise term that accurately describes the profit scenario in question.