Sharon Buys Some Common Stock in 1990 for $10,000 and Sells

question 156

Multiple Choice

Sharon buys some common stock in 1990 for $10,000 and sells it in 2000 for $15,000.During the same period, prices have risen by 75 percent.The net result of Sharon's stock purchases is that she will

• A)pay no taxes because she earned negative real capital gains.
• B)lose purchasing power and have to pay taxes anyway.
• C)earn a real capital gain of $5,000 plus 75 percent.
• D)earn a real capital gain of $15,000 minus 75 percent.

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Definitions:

Desire

A strong feeling of wanting to have something or wishing for something to happen.

AIDA Model

A marketing model that outlines the customer journey through four stages: Attention, Interest, Desire, and Action, used to guide promotional and advertising strategies.

Action

The process of doing something in order to achieve a specific result or change.

AIDA Model

The AIDA Model is a marketing framework that outlines the sequential steps of consumer engagement: Attention, Interest, Desire, and Action, used to guide advertising and sales strategies.