If stockholders sell their shares for more than they paid for those shares, the stockholders

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When stockholders sell their shares for more than they paid for those shares, they realize a capital gain. This occurs when the selling price of the shares is higher than their cost basis (the original purchase price plus any commissions or fees paid to buy the shares). The difference between the selling price and the cost basis is a capital gain, which is subject to taxes.

If Stockholders Sell Their Shares for More Than They Paid