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Facebook Sold Shares of Stock for the First Time in an IPO

Question 59

Multiple Choice

Facebook sold shares of stock for the first time in an IPO on May 18, 2012. The stock originally sold for $38 per share. As of October 19, 2012, a share of Facebook stock was valued at $19 per share. The decrease in the value of a share of Facebook purchased in May and still owned in October is called


A) a capital gain.
B) a capital loss.
C) gross investment.
D) net investment.

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