If a stock was purchased for $5,000 in January 2010 and is sold in December 2010 for $3,000,a ________ of $2,000 results.
A)long-term capital gain
B)short-term capital gain
C)long-term capital loss
D)short-term capital loss

Question

Quizplus · Accepted Answer

Since the stock was held for less than a year (from January to December of the same year), it qualifies as a short-term capital loss. The loss incurred is $2,000 (the difference between the purchase price of $5,000 and the sale price of $3,000).

If a Stock Was Purchased for $5,000 in January 2010