A Capital Gain Is

question 105

Multiple Choice

A capital gain is

• A) when you can sell an asset for more than you paid for it.
• B) when you increase the plant and equipment you own.
• C) when your dividends rise.
• D) when your coupon payment rises.

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Definitions:

Buyer

An individual or entity that purchases goods or services from another party.

Ownership Rights

Legal rights that confer the ability to use, control, and dispose of property or assets.

Passing of Title

The formal process of transferring ownership rights of a property from one entity to another.

Seller

The party that sells or agrees to sell goods or services to another party (buyer) in a commercial transaction.