You Bought Some Shares of Stock and Sell Them One

question 62

Multiple Choice

You bought some shares of stock and sell them one year later.At the end of the year,the price per share was 5 percent higher and the price level was 3 percent higher.Before taxes,you experienced

• A)both a nominal gain and a real gain,and you paid taxes on the nominal gain.
• B)both a nominal gain and a real gain,and you paid taxes only on the real gain.
• C)a nominal gain and a real loss,and you paid taxes on the nominal gain.
• D)a nominal gain and a real loss,and you paid no taxes on the transaction.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Unethical Business Practices

Behaviors or decisions by businesses that are morally wrong, illegal, or violate professional standards.

Insider Trading

Refers to the illegal practice of trading a public company's stock or other securities based on material, nonpublic information about the company.

High Executive Salaries

Compensation that is significantly above the average wage, typically awarded to top-level management and executives.