Which of the following are considered to be capital gains?(1 point)

Question

Responses

the profit earned on the sale of an asset which has increased while it was owned
the profit earned on the sale of an asset which has increased while it was owned

the money lost when a stock is sold for less than it was purchased for
the money lost when a stock is sold for less than it was purchased for

the new value of a stock after the market closes
the new value of a stock after the market closes

the interest earned from a government bond
the interest earned from a government bond

Answer 1

The correct response that is considered to be capital gains is:

• the profit earned on the sale of an asset which has increased while it was owned

The other options (losses on stock sales, the new market value after closing, and interest from a bond) do not qualify as capital gains.