When Shares of Stock Are Sold for More Than the Price

question 154

Multiple Choice

When shares of stock are sold for more than the price at which they were purchased, the difference received by the seller is referred to as

• A)a dividend.
• B)a capital gain.
• C)interest.
• D)economic profit.

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Definitions:

Established Marketplace

A market or exchange with a long-standing presence, recognized for stable operations and a broad base of users or participants.

Escalator Clause

is a contract provision that allows for an automatic adjustment in prices or wages based on fluctuations in certain economic indicators.

Costs Change

Alterations in the financial expenditures associated with producing or obtaining goods and services.

Indirect Costs

Costs that are not directly accountable to a cost object, such as overhead and administrative expenses.