Which of the following illustrates a capital gain?(1 point)

Responses

An investor purchase a stock for $30
and then later sells it for $25
.
An investor purchase a stock for 30 dollars and then later sells it for 25 dollars .

An investor earns a $20
return from a savings deposit.
An investor earns a 20 dollars return from a savings deposit.

An investor earns a $20
return from a bond held until maturity.
An investor earns a 20 dollars return from a bond held until maturity.

An investor purchases a stock for $25
and then later sells it for $30
.

1 answer

The statement that illustrates a capital gain is:

An investor purchases a stock for $25 and then later sells it for $30.

This demonstrates a capital gain because the investor is selling the stock for more than the purchase price, resulting in a profit.