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When a stock is sold at a higher price than the purchase price, it is called a capital gain.

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6mo ago

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What term describes the difference between the purchase price and the sale price of a stock?

The term that describes the difference between the purchase price and the sale price of a stock is "capital gain" if the sale price is higher than the purchase price, or "capital loss" if the sale price is lower. This difference reflects the profit or loss realized from the investment in the stock. Capital gains are typically subject to taxation, while capital losses can sometimes be used to offset gains for tax purposes.


What is a buy limit order above market price and how does it work in trading?

A buy limit order above market price is an instruction to purchase a stock at a specific price that is higher than the current market price. This order will only be executed if the stock's price reaches the specified limit price or lower. It allows traders to set a maximum price they are willing to pay for a stock, helping them control their purchase price and potentially secure a better deal.


What is the difference between the purchase price and the selling price when an investor buys a stock and sells it later at a higher price is this a yield finance related?

buying price is bid, selling price is ask, difference is spread, profit is income or capital gain


Why is the ask price higher than the stock value?

The ask price is higher than the stock value because it represents the price at which sellers are willing to sell their shares, while the stock value is determined by market factors such as supply and demand.


What of these is most likely to lead to an increase price of a company's stock?

Answer : Its profits increase. Explanation : When a company is more profitable, it's stock is in higher demand, and higher demand means a higher price.

Related Questions

Is the price of the stock sharp higher or lower?

The price of the stock is sharply higher.


What term describes the difference between the purchase price and the sale price of a stock?

The term that describes the difference between the purchase price and the sale price of a stock is "capital gain" if the sale price is higher than the purchase price, or "capital loss" if the sale price is lower. This difference reflects the profit or loss realized from the investment in the stock. Capital gains are typically subject to taxation, while capital losses can sometimes be used to offset gains for tax purposes.


The percentage of the total price that must be paid at the time of purchase of a stock is called the?

The percentage of the total price that must be paid at the time of purchase of a stock is called the margin requirement. This requirement is set by brokers and represents the minimum amount of equity that investors must contribute towards the purchase.


What is a buy limit order above market price and how does it work in trading?

A buy limit order above market price is an instruction to purchase a stock at a specific price that is higher than the current market price. This order will only be executed if the stock's price reaches the specified limit price or lower. It allows traders to set a maximum price they are willing to pay for a stock, helping them control their purchase price and potentially secure a better deal.


What is the stock selling for on the stock market?

A share of stock sells for its market price, the current available price to purchase listed on a stock exchange.


What is warrant with respect to stock investing?

A warrant is basically a long term equity security. There are no dividends attached to it and all you own is the opportunity to purchase stock at a predetermined price (subscription price). When warrants are issued the price on the warrant is higher than the market price. Because warrants don't expire for a number of years, you can invest in them if you believe the market price of the stock will appreciate. Once the market price has passed the warrant price (given that it has not expired), the warrant will have intrinsic value and you can purchase the common stock at the subscription price and then turn around to sell it at the higher market price realizing a gain in profit. Hope this helps! Jennifer


How do calculate closing stock?

Cost price (Purchase price) or market price whichever is less that would be taken as Closing Stock


How do you calculate 'closing stock?

Cost price (Purchase price) or market price whichever is less that would be taken as Closing Stock


What is the percentage of the total price that must be paid at the time of purchase of a stock called?

Margin requirement(kaylop)


What is a selling and buying price in stock market?

In the stock market, the selling price is the price at which an investor sells a stock, while the buying price is the price at which they purchase it. The difference between these two prices is known as the spread, which can indicate the liquidity and demand for a stock. Typically, the buying price is higher than the selling price due to the market dynamics of supply and demand, as well as transaction costs. Investors aim to buy low and sell high to realize a profit.


What is a stock option and how do you use it?

Stock options allow you to buy stock in a company at a certain price, no matter what the price of the stock is currently. There is usually a time period associated with the offer. Sometimes this could be a sweet deal (if the stock is currently higher than the option) to worthless (if the option price is higher that the current stock price). You also don't have to have the funds to exercise the option, you can have a brokerage company exercise the option, then sell the stock at the higher price, with the difference being your profit.


What is the difference between the purchase price and the selling price when an investor buys a stock and sells it later at a higher price is this a yield finance related?

buying price is bid, selling price is ask, difference is spread, profit is income or capital gain