A capital gain is
A) a financial instrument that gives the holder a share in the ownership of a firm and therefore the right to share in the profits of the firm.
B) the portion of a corporation's profits that the firm pays out each period to its shareholders.
C) an increase in the value of an asset over the price initially paid for it.
D) the difference between an individual's economic income and money income.

Question

Quizplus · Accepted Answer

A capital gain is an increase in the value of an asset over the price initially paid for it. It is often realized when the asset is sold for a higher price than the purchase price.

A Capital Gain Is