If stockholders sell their shares for more than they paid for those shares, the stockholders:

Name: If stockholders sell their shares for more than they paid for those shares, the stockholders:
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Question

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When stockholders sell their shares for more than they paid for those shares, they realize a capital gain. This represents the difference between the purchase price and the sale price and is considered taxable income. The other options (A, B, and D) are not applicable in this scenario.

If Stockholders Sell Their Shares for More Than They Paid