Q188
Profit made when an asset is sold more than the price at which it was bought is called
A.
capital
B.
capital-gain
AnswerC.
capitalism
D.
None of the above
Answer: Option B
Solution
Answer: Option B
Solution:
Profit made when an asset is sold more than the price at which it was bought is called capital-gain. 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.