Home > Investing Basics > Beginner
Investing Basics Beginner: Capital Gains

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Long-term capital gains are taxed at higher rates than short-term capital gains.
Choose wisely. There is only one correct answer.
False. Long-term gains are taxed at lower rates than short-term gains. This is meant to encourage investors to invest for longer periods.
2.
Almost _______ of all realized capital gains are received from corporate stock sales.
Choose wisely. There is only one correct answer.
50 percent. Almost half of all capital gains taxes are taxes on corporate stocks.
3.
Long-term capital gains are taxed at a higher rate than short-term capital gains.
Choose wisely. There is only one correct answer.
False. Long-term gains are taxed at a lower rate than short-term gains.
4.
Unrealized gains or losses on your investments must be reported on your tax returns.
Choose wisely. There is only one correct answer.
False. Only realized gains or losses must be reported on your tax returns.
5.
You have a capital loss on an investment if your amount realized is less than your basis.
Choose wisely. There is only one correct answer.
True. The amount realized is what you earn from a sale, and the basis is what you paid for it.