Which of the following scenarios illustrates a capital gain? Warren was paid an extra 15 shares in the company stock at the end of the second quarter based on the earnings the company posted.
1) Warren sold his shares in the company stock at a higher price than he bought them for.
2) Warren received a dividend payment from the company based on its profits.
3) Warren purchased additional shares in the company stock at a lower price than he originally paid.
4) Warren was paid an extra 15 shares in the company stock at the end of the second quarter based on the earnings the company posted.