A Realized Capital Gain Is

question 94

Multiple Choice

A realized capital gain is

• A)the difference between the price of a share of stock and what the investor paid for it (i.e., the broker's fee)
• B)the difference between the original value of a piece of equipment and its depreciated value
• C)an increase in the net worth of a sole proprietorship or partnership
• D)an increase in the market value of a share of stock held by an individual
• E)the difference between the selling price and the purchase price of a share of stock

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Definitions:

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.

Economic Profits

The divergence in a company's overall sales versus its combined expenses, spanning both acknowledged and hidden costs.

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, where no single entity can affect the price of the product.

Realizing Profits

The process by which a firm converts its operations and investments into financial gains or returns.