Question

Damien buys stocks worth $2800 in a cosmetic products manufacturing company. His investment turns out to be a sound decision as the prices of his stocks go up by $900. In this scenario, Damien earns a _____.

Answer 1

Capital gain

Step-by-step explanation:

The capital gain is the gain that arises from selling the stock, bond, capital assets. It also show the upward in the price of the capital assets, stock, bond, etc

The capital gain is a gain when the sale price exceeds the purchase price. In other words, it is a difference between the sale price and the purchase price. It can also rise

So according to the given situation, the stock buys at $2,800 and the prices are gone up by $900 so this represents the capital gain