If a Stock Was Purchased for $5,000 in January 2015

question 42

Multiple Choice

If a stock was purchased for $5,000 in January 2015 and is sold in December 2015 for $3,000, a ________ of $2,000 results.

• A) long-term capital gain
• B) short-term capital gain
• C) long-term capital loss
• D) short-term capital loss

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Definitions:

German People

The ethnic group native to Germany, characterized by shared culture, language, and history, forming the majority of the country's population.

Frankfurt Parliament

A national assembly convened in 1848 in Frankfurt, Germany, with the aims of creating a unified German state and drafting a constitution.

French Provisional Government

A temporary governmental structure established in France, particularly noted for those set up after the February Revolution of 1848 and again after the fall of the Second Empire in 1870.

Direct Taxes

Taxes imposed directly on an individual or organization's income, wealth, or assets rather than on goods and services.