In the Securities Markets, Capital Gains Take Place When

question 125

Multiple Choice

In the securities markets, capital gains take place when

• A) the value of the Dow Jones Industrial Average appreciates.
• B) a security sells for more than the original purchase price.
• C) additional investors buy stock in an existing corporation.
• D) stockholders profit from the firm's use of leverage.

---

Definitions:

Agricultural Resources

Inputs used in the production of agricultural goods, such as land, labor, and capital, along with more specific resources like seeds and fertilizers.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for being the world’s oldest surviving federation.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, fostering cooperation in economic, social, and security matters.

Price-support Programs

Government initiatives designed to stabilize or increase market prices of specific commodities by buying excess supply, offering subsidies, or setting minimum prices.