Question

An investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the stock was priced at $5 per share. The investor sold all 50 shares of stock in 2019. The value of the stock at the time of sale was $6.50 per share. What is the capital gain the investor earned on this investment?(1 point) Responses $325 325 dollars $50 50 dollars $250 250 dollars $75

Answer 1

[AI-generated answer — Bot GPT 3.5]

The capital gain can be calculated by subtracting the purchase cost from the selling price:

Selling Price = $6.50
Purchase Price = $5.00
Capital Gain per Share = $6.50 - $5.00 = $1.50

Total Capital Gain = Capital Gain per Share x Number of Shares
Total Capital Gain = $1.50 x 50 shares = $75

Therefore, the investor earned a capital gain of $75 on this investment.