Drew is a common stockholder in a corporation. She paid $7,600 to purchase the stock of the company. However, the price of the stock goes down by $300 in the market soon after she makes the purchase. In this case, Drew will experience _____.
A) debt capital
B) price dispersion
C) a price override
D) a capital loss

Question

Quizplus · Accepted Answer

Drew will experience a capital loss because the value of her investment has decreased by $300, which is the difference between the purchase price and the current market price of the stock.

Drew Is a Common Stockholder in a Corporation