What concept prevents investors from having control over the tax year in which they realize gains and losses?
A) mark-to-market
B) volatility
C) market timing
D) tax code changes
E) conservation principle

Question

Quizplus · Accepted Answer

Mark-to-market accounting requires investors to value their investments at their current market prices, thus realizing any gains or losses annually, which prevents them from choosing the tax year for these realizations.

What Concept Prevents Investors from Having Control Over the Tax