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

Responses

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 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 below its issue price.

1 answer

An example of capital loss is:

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

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