You purchased 100 shares of IminusTech stock for $40 per share 3 years ago. If you sold those shares today at the current market price of $150 per share, what would be your capital gain on the sale, ignoring all commissions?

Capital gain =$11,000

Explanation:

Capital gain / Loss is the difference between the value of a stock when it was sold less the cost of the shares when it was purchased.

Where the cost of the shares is more the sales value it becomes a capital loss and a gain is made if the opposite occurs.

The capital gain made on the stock of Iminus Tech is

= ($150 ×  100) - ($40 × 100)

=$11,000

Capital gain= $11,000

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

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