Which of the following illustrates a capital gain?(1 point)
Responses
An investor purchases a stock for $25 and then later sells it for $30.
An investor purchases a stock for 25 dollars and then later sells it for 30 dollars .
An investor earns a $20 return from a bond held until maturity.
An investor earns a 20 dollars return from a bond held until maturity.
An investor purchase a stock for $30 and then later sells it for $25.
An investor purchase a stock for 30 dollars and then later sells it for 25 dollars .
An investor earns a $20 return from a savings deposit.
An investor purchases a stock for $25 and then later sells it for $30.
The correct response that illustrates a capital gain is:
An investor purchases a stock for $25 and then later sells it for $30.
The correct option that illustrates a capital gain is:
An investor purchases a stock for $25 and then later sells it for $30.
A capital gain occurs when an investor sells an asset, such as stocks, real estate, or bonds, at a higher price than what they initially paid for it. In this scenario, the investor bought a stock for $25 and sold it for $30, which means they made a profit of $5 ($30 - $25). This $5 profit is a capital gain.