When shares of stock are sold for more than the price at which they were purchased, the difference received by the seller is referred to as

Question

Quizplus · Accepted Answer

When shares of stock are sold for more than the price at which they were purchased, it is referred to as a capital gain. This is because the seller is gaining capital, or profit, from the sale of the stock. Dividends are a portion of a company's profits paid out to shareholders, interest is earned on bonds and other debt securities, and economic profit encompasses all costs including opportunity costs.

When Shares of Stock Are Sold for More Than the Price