A capital gain is
A) when you can sell an asset for more than you paid for it.
B) when you increase the plant and equipment you own.
C) when your dividends rise.
D) when your coupon payment rises.

Question

Quizplus · Accepted Answer

A capital gain is the profit one earns on the sale of an asset that has increased in value over time. Therefore, choice A is the best answer as it accurately defines a capital gain. Choices B, C, and D do not relate to the definition of a capital gain.

A Capital Gain Is