What is recognized when all common stock shares are sold in an investment?

When all common stock shares are sold in an investment, the appropriate item to recognize is a gain or loss on the sale of investments. This reflects the difference between the selling price of the shares and their original purchase price (cost). If the selling price exceeds the purchase price, a gain is recorded; if the selling price is less, a loss is recognized. This concept is fundamental in accounting, as it captures the performance of the investment over time and affects the overall financial position of the investor.

Other terms like cash dividend, fair value adjustment, and equity investment return are relevant in different contexts but do not directly pertain to the outcome of selling the shares. A cash dividend reflects earnings distributed to shareholders, a fair value adjustment pertains to changes in the value of investments when they are still held, and an equity investment return refers to overall income generated from the investment, which may include dividends or capital gains but does not specifically address the transaction of selling stocks.