Mr. Joe Lewis bought 650 shares of stocks in the Garrett Corp. last year at a price of $19 per share. The market price has now risen to $25 per share. This result indicates that Mr. Lewis could realize a capital gain if he sells his stock.

Question

Quizplus · Accepted Answer

A capital gain is the profit made from selling an asset at a higher price than it was purchased. Since the market price of the Garrett Corp. stock has risen from $19 to $25 per share, Mr. Lewis could sell his 650 shares at the current market price of $25 per share and realize a capital gain.

Mr Joe Lewis Bought 650 Shares of Stocks in the Garrett