What are capital gains on an investment?

ОА

interest income that investors earn

Ов,

income that investors earn from buying and selling investments

C.

dividends that companies distribute to investors from a portion of their profits

OD

income that investors earn from investing in a new business

The correct answer is B. Income that investors earn from buying and selling investments

Explanation:

In economics, capital gain is defined as an income or profit derived from buying and selling an asset or investment this includes properties, land, stocks, among others. For example, if you buy a house for $450.000 but sell this at $ 600.000 the difference in price ($150.00) is considered capital gain because this is the amount of money you as the gained by buying and then selling an asset. Thus, the capital gains on an investment is "Income that investors earn from buying and selling investments."