A capital gain occurs when:
A) the selling price is less than the purchase price.
B) the purchase price is less than the selling price.
C) there is no dividend paid.
D) there is no income component of return.
E) never, as they cannot exist.

Question

Quizplus · Accepted Answer

A capital gain occurs when the selling price is greater than the purchase price, resulting in a profit for the investor. Therefore, choice B "the purchase price is less than the selling price" is the correct answer.

A Capital Gain Occurs When