Asked by Kristen Salcedo on Apr 27, 2024
Verified
Leon purchased 8,500 shares of stock at a price of $11.45 a share.He sold the stock 6 years later at a price of $19.78 per share.His capital gain is about 58%.
Capital Gain
The profit from the sale of assets such as stocks, bonds, or real estate, which exceeds the purchase price.
- Assess stock market indicators such as capital gains, dividends, and yield to make informed investment decisions.
Verified Answer
VH
Vivian HortaApr 28, 2024
Final Answer :
False
Explanation :
Leon's capital gain per share is $19.78 - $11.45 = $8.33. To find the percentage gain, divide the gain per share by the purchase price per share: $8.33 / $11.45 ≈ 0.7277, or 72.77%.
Learning Objectives
- Assess stock market indicators such as capital gains, dividends, and yield to make informed investment decisions.