Question

Kai bought 120 shares of stock for $68.24 per share. He sold them nine months later for $85.89 per share. What was his capital gain?

Answer 1

2118 dollars

Explanation:

His capital gain is the difference in the (sell - buy) prices multiplied by the number of shares (120).

120 * (85.89 - 68.24) = 120 * 17.65 = 2118

The capital gain is a short term gain (held under a year)

The amount is 2118 dollars.