Question

The use of stock as a meaningful portion of a transaction generally leads to a:

Answer 1

Using stock as a meaningful portion of a transaction generally leads to a capital gain, which is the increase in the value of the stock between when it is bought and sold.

Step-by-step explanation:

When a stock is used as a meaningful portion of a transaction, it generally leads to a capital gain. A capital gain is the increase in the value of the stock or any asset between when it is bought and when it is sold. For example, if an investor buys a share of stock in a company for $45 and then sells it for $60, they would have a capital gain of $15.