If the price of a stock rises above the amount a shareholder paid for it, then that shareholder will recognize which of the following?

Question

Quizplus · Accepted Answer

When the price of a stock rises above the amount a shareholder paid for it, the shareholder realizes a capital gain. This is the profit earned when the stock is sold at a price higher than the purchase price. Choices A, B, and C are not relevant to this situation.

If the Price of a Stock Rises Above the Amount