Capital gains and losses generally do not result unless there is a sale or exchange. An exception to this rule occurs when an investor holds corporate stock that becomes worthless.

Question

Quizplus · Accepted Answer

This statement is true. Capital gains and losses are realized when there is a sale or exchange of an asset, but if an investor holds corporate stock that becomes completely worthless, they can claim a capital loss without actually selling the stock.

Capital Gains and Losses Generally Do Not Result Unless There