Responses
An investor purchase a stock for $30 and then later sells it for $25.
An investor purchase a stock for $30 and then later sells it for $25.
An investor earns a $20 return from a savings deposit.
An investor earns a $20 return from a savings deposit.
An investor earns a $20 return from a bond held until maturity.
An investor earns a $20 return from a bond held until maturity.
An investor purchases a stock for $25 and then later sells it for $30.
1 answer
The correct response that illustrates a capital gain is:
An investor purchases a stock for $25 and then later sells it for $30.
A capital gain occurs when an asset is sold for more than its purchase price. In this case, the investor sold the stock for $30 after buying it for $25, resulting in a capital gain of $5.
