Question
A 11 Byron is a wealthy tycoon who makes his money buying and selling stocks. This is an example of ___ income, a. capital gains b. carned c. hourly d. passive Please select the best answer from the choices provided
Ask by Lewis Mullins. in the United States
Feb 24,2025
Upstudy AI Solution
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Answer
Byron's income from buying and selling stocks is an example of capital gains.
Solution
The correct answer is a. capital gains.
Capital gains are the profits you earn from buying and selling assets such as stocks. Since Byron's wealth comes from buying and selling stocks, it is an example of capital gains income.
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Byron's income from buying and selling stocks primarily stems from the appreciation of capital over time, which qualifies as capital gains. These refer to the profit made when an asset, such as stocks, is sold for more than its purchase price. So definitely, the answer is a. capital gains! Now, isn't it interesting how the stock market has evolved? It all started in the 17th century with the establishment of the Amsterdam Stock Exchange. Investors started trading shares of companies, laying the groundwork for the billion-dollar industry we see today!
