Question

Cassie bought 300 shares of CAB Inc. stock and later sold them for a $500 profit. What type of income did she have?


Select the best answer from the choices provided.
A.
dividend income
B.
stock options
C.
capital gains
D.
equity income

Answer 1

Answer:

Hi,

The correct answer option is C. capital gain.

Step-by-step explanation:

Divided is the money a company pays to its shareholders every year after calculating the profits. A company can decided to distribute its earnings to the shareholders from the stock owned by the members.This income is called the divided income.When this income is specifically from stock divided, its called equity income.When Cassie sold the shares for a higher profit, she obtained a capital gain.The two main ways investors can get returns from stock are through divided and capital gains.

Best of Luck!