The correct response that exemplifies a capital loss is:
An investor sells a bond on the secondary market below the price she paid for it.
This is because a capital loss occurs when an asset is sold for less than its purchase price.
Financial Markets Channeling Funds Quick Check
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Question
Which of the following is an example of capital loss?(1 point)
Responses
An investor purchases a bond on the secondary market above its issue price.
An investor purchases a bond on the secondary market above its issue price.
An investor sells a bond on the secondary market above the price she paid for it.
An investor sells a bond on the secondary market above the price she paid for it.
An investor sells a bond on the secondary market below the price she paid for it.
An investor sells a bond on the secondary market below the price she paid for it.
An investor purchases a bond on the secondary market below its issue price.
1 answer
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