In the securities market, what is a capital gain?
What will be an ideal response?
Answer: A capital gain occurs when an investor buys a security for a certain price and sells it at a higher price. The profit made from the sale is the capital gain.
Explanation: Capital gain is the term for the profit made by selling a security for a price that is higher than the price the investor paid for it.
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Credit risk exposes the lender to the uncertainty that only interest payments may not be received.
a. true b. false
An experience curve:
a. captures the per-unit cost declines in production every time the company's accumulated manufacturing volume doubles b. creates cost savings arise from the combined effects of learning, volume, and specialization c. a and b d. indicates professional development growth of employees e. none of the above