With stock investing, when does a capital gain occur?
A) the stock owner is paid dividends without having to sell shares
B) the stock owner sells the stock for a higher price than he paid for it
C) the stock owner sells the stock for a lower price than he paid for it
D) the stock owner receives legal entitlement to physical property of the company
E) a capital gain is not possible with stock investing
B
Explanation: B) A capital gain occurs when someone sells a stock for a higher price than he or she paid for it. The gain is the difference between the selling price and the original price.
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The following information is provided by Turnbridge Systems:
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