asked 224k views
5 votes
Lisa bought stock three years ago and sold it today for a profit of $1,200. this is a _____.

The answers are
A) Capital Gain
B) Dividend
C) Commission
D) Tip

asked
User Seliopou
by
8.7k points

1 Answer

4 votes
When you sell a stock for a profit (sales price is greater than the price you bought it for), this is called a Capital Gain.
Answer is A) Capital Gain

Remember that dividend is your share of the company's income, distributed based on what percentage ownership you have. You do not sell the stock to receive dividends, it is the income you receive while owning the stock.
answered
User Tom Bush
by
7.3k points

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