When shares of stock are sold for more than they are purchased,the difference received by the seller is referred to as:

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The difference received by the seller when shares of stock are sold for more than they are purchased is referred to as a capital gain. This gain is the profit earned by the investor on the sale of their shares. Dividends are regular payments made by the company to its shareholders out of its profits or reserves. Interest is income earned on investments, such as bonds or savings accounts. Economic profit is the difference between total revenue and total opportunity costs (including explicit and implicit costs).

When Shares of Stock Are Sold for More Than They