You just sold 200 shares of Langley,Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year,you received dividends totaling $1.64 per share. What is your capital gain on this investment?
A) -$550
B) -$222
C) -$3
D) $550
E) $878

Question

Quizplus · Accepted Answer

The capital gain is calculated as the difference between the selling price and the purchase price, multiplied by the number of shares. Here, it is (38.75 - 41.50) * 200 = -$550. Dividends are not included in capital gain calculations.

You Just Sold 200 Shares of Langley,Inc