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.
Short-term assets are assets held _______ month(s) or fewer.
Choose wisely. There is only one correct answer.
Twelve. This has implications for taxation.
3.
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.
4.
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.
5.
The amount of time you hold onto an asset is known as the ________.
Choose wisely. There is only one correct answer.
Holding period. The holding period is the amount of time you hold onto your asset.