Discover How Jamie Turned a Capital Loss into an Opportunity!

What is the recognized capital loss from the sale of Jamie's Sterile Inc. shares?

A. $2,500

B. $3,000

C. $5,000

D. $1,000

The recognized capital loss from the sale of Jamie's Sterile Inc. shares is $3,000.

Explanation: The concept in question here is capital loss during stock trading. Initial purchase price of the shares bought by Jamie was $5,000 for 500 shares. Later, due to the downturn, the entire position was sold for $2,000, establishing a loss of $3,000. Jamie then repurchased the stock for $2,500. However, the repurchase does not affect the initial capital loss. Therefore, Jamie's recognized capital loss from the sale of her Sterile Inc. shares is $3,000.

Jamie's adventure in the stock market is filled with ups and downs, but she always manages to find opportunities even in challenging situations. Let's take a closer look at how Jamie's recognized capital loss from the sale of her Sterile Inc. shares became an opportunity for her.

When Jamie initially purchased 500 shares of Sterile Inc. stock for $5,000, she had high hopes for the company's performance. However, when the stock price took a downturn, Jamie had to sell her shares for $2,000, incurring a capital loss of $3,000.

Instead of being discouraged by this setback, Jamie saw it as an opportunity to make a strategic move. She decided to repurchase 500 shares of Sterile Inc. stock on June 30 for $2,500. This decision not only allowed her to reestablish her position in the stock but also positioned her for potential future gains.

By recognizing the capital loss from the sale of her Sterile Inc. shares and taking decisive action to repurchase the stock at a lower price, Jamie demonstrated her resilience and ability to turn challenges into opportunities in the stock market.