Indy owns 100 shares of stock in Pet Mart Corporation that he purchased for $20 per share. Every year he has received, from company proﬁts, $1 for each share he owns. If Indy sells all his shares at
A price of $30 per share, he will receive a

Question

Quizplus · Accepted Answer

If Indy sells all his shares at $30 per share, his total revenue will be $3,000 (100 shares x $30 per share). Since he initially bought the shares at $20 per share, his total cost was $2,000 (100 shares x $20 per share). Therefore, his total capital gain is $1,000 ($3,000 - $2,000).

Indy Owns 100 Shares of Stock in Pet Mart Corporation