Indy owns 100 shares of stock in Pet Mart Corporation that he purchased for $20 per share.Every year he has received,from company profits,$1 for each share he owns. Refer to the information given.If Indy sells all his shares at a price of $30 per share,he will receive a:

Question

Quizplus · Accepted Answer

If Indy sells all his shares at $30 per share, he will receive a total of $3,000 (100 shares x $30 per share). Since he originally purchased the shares for $20 per share, his total cost of the shares was $2,000 (100 shares x $20 per share). This means that his capital gain would be $1,000 ($3,000 - $2,000).

Indy Owns 100 Shares of Stock in Pet Mart Corporation