Answer:
A $,2,000 short term capital gain
Explanation:
Investors in shares and other securities speculate on the price of the securities they hold. When prices rose it is a good opportunity bro sell and make profit.
This gain is often larger than what they would make from dividend payments.
In this instance he sold shares at $60 each and bought them back at $50.
The gain on this transaction is
Gain = (200 * 60) - (200 * 50)
Gain = $2,000
This is a short term gain and a holding period is not established for this transaction
