When an Investor Sells a Security for More Than the Purchase

question 81

Multiple Choice

When an investor sells a security for more than the purchase price, the investor earns a(n)

• A) dividend payment.
• B) appreciated interest receipt.
• C) corporate benefit.
• D) capital gain.

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Definitions:

Exclusive Rights

Legal privileges granted to individuals or entities, allowing them to use, produce, or sell a particular product or service without competition.

Airspace

The space above the earth's surface that is available for aircraft to fly through, often regulated by a sovereign entity.

Valid Deed

A legal instrument that transfers ownership of real property from one person to another, which must meet certain requirements such as being in writing, having a clear description of the property, and being properly executed and delivered.

Intent to Convey

The legal determination or declaration of a party's intention to transfer rights, property, or interest from one to another.