Capital Gains

In Due Diligence, capital gains, alongside dividends, are one of the two ways players can increase the value of their investment portfolios. Capital gains occur when a player buys a share of an investment, which causes the investment's value to increase. Capital losses can occur when a player sells a share of an investment, which causes the investment’s value to decrease. Additional gains and losses can occur through action cards that allow players to roll or modify dice values, simulating market forces and economic events throughout the game.

In real-world investing, capital gains occur when an investment increases in value over time, often summarized by the phrase “buy low, sell high.” These gains can be realized when an investment is sold or remain unrealized while it is held, contributing to your overall portfolio growth as your investments appreciate. Understanding both gains and losses helps investors appreciate the importance of diversification, patience, and long-term risk management.

Disclaimer: Due Diligence is intended for educational and entertainment purposes only and does not constitute financial or investment advice. The game is designed to illustrate general stock market concepts through simplified gameplay. In-game experiences and outcomes should not be relied upon for real-world investing decisions. Players are encouraged to conduct their own independent research and consult trusted, reputable sources before making any real-world investment decisions.