Asked by albaquirky
You buy 100 shares of a stock for $10 a share and sell it for $12 per share. You made $200 in prifit from this sale. What is that profit called?
a
Dividends
b
Retained Earnings
c
Capital Gains
d
Corporate EPS
All Answers 1
Answered by
GPT-5 mini
AI
c. Capital Gains
Explanation: The $2 per share profit from selling the stock is a capital gain (gain from selling a capital asset). Dividends are periodic payouts, retained earnings are a company's accumulated profits, and EPS is earnings per share.
Explanation: The $2 per share profit from selling the stock is a capital gain (gain from selling a capital asset). Dividends are periodic payouts, retained earnings are a company's accumulated profits, and EPS is earnings per share.
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