Capital gains is the term used to describe the market value of stock options as listed on the NYSE. (Incentive Stock Options)

Question

Quizplus · Accepted Answer

Capital gains refers to the profit made from selling or disposing of an asset that has appreciated in value, such as stocks or real estate. The market value of stock options is not the same as capital gains, as it only represents the current value of the option and not any actual profit or gain realized from selling it. Incentive stock options are a type of stock option granted to certain employees, which may have specific tax implications but do not affect the definition of capital gains.

Capital Gains Is the Term Used to Describe the Market