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What is a Capital Gain on an investment?

A. Money that you are paid as a result of owning stock in a company that is earning a profit.

B. Money that you are paid for letting others borrow your money for a period of time.

C. Money that you are paid for letting others borrow your money for a period of time.

D. Increase in value of an equity investment that is a result of appreciation of that asset.

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Answer:

B and C are the same, and none of the answers are correct

Explanation:

Capital gain is the amount of money you earn after selling a property or investment. It's essentially (the price you sold it for) -- (the price you paid for it)

eg if you bought stock for $100 and sold it for $200, you'd have a capital gain of $100 (200-100)

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