Final answer:
The positive difference between the purchase price and sale price of a stock is called C) capital gain, representing the profit made from the investment.
Step-by-step explanation:
The positive difference between the purchase price of a stock and its sale price is called a capital gain. When an investor buys a stock, for instance, at $45 and later sells that share for $60, the $15 increase in value is the capital gain. This gain represents a return on the investment, differing from dividends, which are direct payments to shareholders.
There is a wide range of potential returns from investing in stocks, including the potential for capital gains when stock prices rise. However, it's also possible to experience a capital loss if the stock's selling price is less than the purchase price. The volatility of stock prices means that investments can undergo substantial fluctuations even over short periods.