Responses
An investor earns a $20
return from a savings deposit.
An investor earns a 20 dollars return from a savings deposit.
An investor purchases a stock for $25
and then later sells it for $30
.
An investor purchases a stock for 25 dollars and then later sells it for 30 dollars .
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 purchase a stock for $30
and then later sells it for $25
.
1 answer
A capital gain is realized when an investment is sold for more than its purchase price.
In your options, the example that illustrates a capital gain is:
An investor purchases a stock for $25 and then later sells it for $30.
This transaction shows a profit of $5, which is a capital gain. The other options do not illustrate capital gains as they refer to income from deposits or bonds or a loss in the case of the last option.
