Asked by McKenzie Copher on Apr 28, 2024
Verified
You just sold 200 shares of Langley, Inc. stock at a price of $38.75 a share. Last year you paid $41.50 a share to buy this stock. Over the course of the year, you received dividends totaling $1.64 per share. What is your capital gain on this investment?
A) -$550
B) -$222
C) -$3
D) $550
E) $878
Capital Gain
The profit from the sale of a capital asset, such as stocks or real estate, where the sale price exceeds the purchase price.
Dividends
Payments made by a corporation to its shareholder members, often derived from the company's profits.
Shares
Shares represent units of ownership interest in a company or financial asset that provide an equal distribution in any profits, if any are declared, in the form of dividends.
- Analyze the economic results of investing in stocks, focusing on both positive and negative returns.
Verified Answer
Learning Objectives
- Analyze the economic results of investing in stocks, focusing on both positive and negative returns.
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