What happens when you sell a stock, a bond, or a second home for a profit? In this episode, we take a deep dive into Capital Gains Tax (CGT)—the levy applied to the profit realized on the sale of non-inventory assets. We explore how this tax functions not just as a revenue generator for governments, but as a powerful force that shapes investor behavior and market liquidity.

Join us as we unpack the economic friction caused by CGT, specifically the "lock-in effect," where investors hold onto assets longer than economically efficient simply to defer tax liabilities. We also examine how this tax acts as a barrier to selling, potentially distorting asset prices and reducing an investor's willingness to trade.

Key topics covered in this episode include:

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