Realized capital gain is usually created on sale; a dividend is a distribution by a company to its shareholders.
Selling an investment and seeing an increase on a chart are not the same. Tax may apply to the gain calculated according to tax rules, not to the entire sale proceeds. A dividend is a separate event even if you did not sell a share. Rates vary by asset, type of taxpayer, substantial ownership, residence and other circumstances; there may be withholding, loss offsets and surtax. Contributions to pension or to an account with tax benefits are not the same as a regular investment account.
Exercise only: purchase at 100, sale at 140, with no costs and no adjustments. If you assume 25% tax on the gain, the tax is 10 and the gain after tax is 30. This is an exercise assumption and not a determination of your personal rate.
In an educational example, an asset costs 1,000 money units and sells for 1,200. Profit before expenses is 200, not the entire sale proceeds. Suppose the exercise applies an imaginary 20% tax to that profit: tax is 40 and remaining profit is 160. Fees, recognized losses and other circumstances can change real calculations. A price increase on screen also differs from a completed sale. Distinguish proceeds, purchase cost, realized profit and tax liability.
Concepts that help you compare
Profit and loss: reading the numbers
Profit or loss is the difference between an investment’s current value and its cost. Before selling, this is an unrealized change in the value of the holding. After selling, the result is realized. Percentage return compares the change to the original cost. To get net results, also account for fees and relevant taxes.
Comparison example: You bought at 100 ₪ and the value is 90 ₪: a value loss of 10 ₪, i.e. 10%. An increase from 90 back to 100 requires about 11.1%.
Commissions and management fees are costs that reduce the investor's outcome. There are transaction costs and ongoing costs. Compare products by the total set of terms, not only past returns. A small percentage charged over years can affect the remaining amount. Tax rates depend on the product and the circumstances and are not uniform.
Comparison example: If a purchase fee of 5 ₪ is charged on a 100 ₪ transaction, that is a 5% cost of the amount even before any price change.