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ankoles [38]
3 years ago
5

Explain why a financial investor in stocks cannot earn high capital gains simply by buying companies with a demonstrated record

of high profits.
Business
1 answer:
DanielleElmas [232]3 years ago
3 0

Answer:

Capital gains is the appreciation or growth in the value of shares. A financial investor cannot earn high capital gains simply by buying companies with a demonstrated record of high profit.

Explanation:

Capital gains however can be received, when an invested buys a share at a low price and sell to another investor at a high price. In this situation the difference between the buying price and selling price, becomes the capital gains.

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