If a Capital Asset Held for One Year or More

question 105

True/False

If a capital asset held for one year or more is sold at a gain,the gain is classified as long-term capital gain.

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Definitions:

Precious Metals

Metallic elements of high economic value, such as gold, silver, and platinum, often used as investment or for industrial purposes.

NAV

Net Asset Value, representing the per-share/unit price of a fund on a specific date or time, calculated by deducting liabilities from assets and dividing by the number of shares outstanding.

Load

A fee or charge assessed when buying or selling shares in a mutual fund, which can be front-end (when buying) or back-end (when selling).

Asset Allocation Funds

Mutual funds that invest in a mixed proportion of assets (e.g., stocks, bonds, real estate) to diversify risk.