Question

Which of the following is an example of capital loss?(1 point)
Responses

An investor purchases a bond on the secondary market below its issue price.
An investor purchases a bond on the secondary market below 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 above its issue price.

1 answer

An investor sells a bond on the secondary market below the price she paid for it.

This is an example of a capital loss because the investor is selling the asset for less than its purchase price, resulting in a loss.