Pam bought 500 shares of stocks in the Lehman Corporation last year at a price of $24 per share. The market price has now risen to $35 per share. This result indicates that Pam could realize a capital gain if she sells her stock.

Question

Quizplus · Accepted Answer

Since the market price has risen to $35 per share, it is higher than the price at which Pam bought the stocks ($24 per share). Therefore, she could sell her stocks at a higher price and realize a capital gain.

Pam Bought 500 Shares of Stocks in the Lehman Corporation