A person buys 40 shares of stock at $10 a share and sells them at $20 a share. Excluding any brokerage fee, this transaction resulted in a

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Business

Dominique Raymond

4 September, 10:31

A person buys 40 shares of stock at $10 a share and sells them at $20 a share. Excluding any brokerage fee, this transaction resulted in a

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Maggie Walter · Answer 1

This transaction resulting in a gain situation. The investor received the gain amounting $400 from his/her investment. There are two kinds of return resulted in stock investment, which is the capital gain and the dividend. Capital gain is the investment return emerged from a difference between the stock price at a specified amount of time and dividend is the attributed portion of company's income to its investors.