Suppose that at the beginning of the year, a portfolio contains cash, of value $10,000, in an account which bears interest without any charges. At the beginning of the fourth quarter, $8,000 of that cash is invested in some US dollar shares (in company X). The investor applies a buy-and-hold strategy, and there are no further transactions for the remainder of the year. At the end of the year, the shares have increased in value by 10% to $8,800, and $100 interest is capitalized into the cash account.