Question

You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the

Answer 1

Answer:

d. a nominal gain, but no real gain, and you paid taxes on the nominal gain.

Explanation:

Nominal gain: In business, the term "nominal gain" is described as the increase or hike in the price or cost of an asset as per the "federal tax code" and is also denoted as "nominal amount" and is considered as non-adjustable for inflation. However, when a specific product or asset or stock is being sold more than its "actual price" or above its "purchase price" then a gain or profit is noted and hence is taxed.

In the question above, the correct answer is option D.