Which of the following results in taxable income to the investor?

Name: Which of the following results in taxable income to the investor?
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Question

Quizplus · Accepted Answer

Cash dividends result in taxable income to the investor when they are distributed. Unlike stock splits and stock dividends, which are adjustments to the number of shares an investor holds and do not result in immediate tax consequences, cash dividends provide actual income to the investor, which is typically subject to taxation.

Which of the Following Results in Taxable Income to the Investor