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Facebook Sold Shares of Stock for the First Time in an IPO

Question 3

Multiple Choice

Facebook sold shares of stock for the first time in an IPO on May 18, 2012. The stock originally sold for $38 per share. As of October 19, 2012, a share of Facebook stock was valued at $19 per share. The decrease in the value of a share of Facebook purchased in May and still owned in October is called


A) a capital gain.
B) a capital loss.
C) gross investment.
D) net investment.

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