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A Share Of Stock In The Lofty Cheese Company

Let us assume a share of stock in the Lofty Cheese Company is quoted at 251/4. Suppose you hold thirty shares at 201/4 and sell them at 251/4. In other words, you will lose $15 but make $150. If you sell the stock at its current price, you will make a profit of $150. This is known as a capital gain. You can also use the same example to determine your capital loss.

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