Marco bought 100 shares of Xtreem Energy Drink stock at $75 per share. One year later the stock price is $87, and Marco is content to watch his investment grow. Which of the following statements is true?
A) Marco has earned a capital gain of $1,200.
B) Marco has earned a capital gain of $12.
C) Marco has earned no capital gain.
D) Marco has taken a capital loss of $1,200.
E) Marco has taken a capital loss of $12.
Answer: C
Explanation: C) Capital gains are earned when a security is sold at a price that is higher than the purchase price. Marco has not sold his securities, so he has not earned a capital gain even though the price of the security has risen from his purchase price.
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Opportunities can be controlled by ________ at one extreme and ________ at the other extreme
a) competitors; customers b) customers; suppliers c) government; markets d) markets; buyers