BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the difference between the selling price and purchase price that results in a large financial gain for the seller
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the difference between the selling price and purchase price that is a huge financial loss for the seller
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a market in which money is lent for periods of one or more years
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Detailed explanation-1: -Definition: Capital gain is the profit one earns on the sale of an asset like stocks, bonds or real estate. It results in capital gain when the selling price of an asset exceeds its purchase price. It is the difference between the selling price (higher) and cost price (lower) of the asset.
Detailed explanation-2: -Capital gains are any increase in a capital asset’s value. Capital gains distributions are payments a mutual fund or an exchange-traded fund (ETF) makes to its holders that are a portion of proceeds from the fund’s sales of stocks or other portfolio assets.
Detailed explanation-3: -A capital gain is the increase in a capital asset’s value and is realized when the asset is sold. Capital gains apply to any type of asset, including investments and those purchased for personal use. The gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.
Detailed explanation-4: -If you sell an asset for more than you paid for it, your profit (minus your cost basis) is called a capital gain. Short-term capital gains are profits from selling assets you own for a year or less.
Detailed explanation-5: -Capital Gains are classified according to their time horizon. The two types of Capital Gains are: Short-Term Capital Gain. Long-Term Capital Gain.