If You Purchased 10 Shares of Goldman Sachs Stock for $1,200

question 155

Multiple Choice

If you purchased 10 shares of Goldman Sachs stock for $1,200 five years ago and continue to hold the stock today but its value has risen to $1,500,how much will you owe in capital gains tax on your 10 shares? Assume the tax rate on capital gains is set at 15%.

• A) $0
• B) $45
• C) $180
• D) $225

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Definitions:

Securities Exchange Act Of 1934

U.S. legislation governing the secondary trading of securities (stocks, bonds, and debentures) in the financial market, aimed at regulating the exchanges and preventing fraud.

Private Transactions

Private transactions are trades or deals conducted directly between two parties without the involvement of a public exchange or the public eye.

Trading Of Securities

The buying and selling of financial instruments such as stocks, bonds, and derivatives.

Deceptive And Manipulative Practices

Actions deliberately intended to mislead or trick others, often for personal or financial gain and at the expense of others.