A share of IBM stock is purchased by an individual investor for $75 and later sold to another investor for $125.Who profits from this sale?

Question

Quizplus · Accepted Answer

The first investor would profit from this sale, as they bought the share for $75 and sold it for $125, resulting in a gain of $50. IBM does not make any profit from the sale of a share on the secondary market – they only make money when they issue new shares. The second investor simply acquires the share and does not profit until they sell it at a higher price in the future. Therefore, D is also incorrect.

A Share of IBM Stock Is Purchased by an Individual