A capital gain (or loss) is the difference between your sale price and your cost basis. If you sell stock for more than you paid for it, you recognize a gain. If you sell it for less than you paid for it, it is considered a loss. How much of that gain (or loss) you report depends on your cost basis.
For shares that you received through a stock plan, it is important to note that you may need to make adjustments to your cost basis to correctly calculate any capital gains or losses.
To learn more about how capital gains work for your stock plan shares, refer to Fidelity’s stock plan guides at the Taxes and tax-filing page.