Question

n investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the stock was priced at $5 per share. The investor sold all 50 shares of stock in 2019. The value of the stock at the time of sale was $6.50 per share. What is the capital gain the investor earned on this investment?(1 point)
Responses

$50
$50

$75
$75

$325
$325

$250
$250

Answer 1

The capital gain the investor earned on this investment can be calculated by subtracting the purchase price from the sale price and multiplying by the number of shares:

Capital gain = (Sale price - Purchase price) * Number of shares
= ($6.50 - $5.00) * 50
= $1.50 * 50
= $75

Therefore, the capital gain the investor earned on this investment was $75.