Question

Question

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

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 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 interest earned from a government bond

Answer 1

Capital gains are defined as the profit earned on the sale of an asset that has increased in value since it was purchased. Therefore, the correct response from the options you provided is:

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

The other options do not represent capital gains.