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

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.
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1 answer

The correct example of a capital loss is:

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

This scenario results in a capital loss because the investor is receiving less money from the sale than what they originally paid for the bond.

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