Question

Austin bought 10 shares of Apex Company for $110 each and later sold all of them at $125 each. This transaction resulted in what type of event?

Answer 1

If Austin bought 10 shares if Apex Company stocks for $110 and then sold them all at a higher dollar amount of $125, the transaction would result in a capital gain.

A capital gain is the profit from the sale of a property or an investment. In this case, Austin has a property gain of $15 on each of the stocks he sells at a higher rate. Those who invest always want to see a capital gain on their assets, a gain is the main driving force in those who invest.