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Which of the Following Is True About Mutual Funds and Taxes

Question 69

Multiple Choice

Which of the following is true about mutual funds and taxes?


A) Capital gain distributions are taxed when you sell your shares.
B) Income dividends are taxed quarterly.
C) Investment companies are required to send each shareholder a year-end statement that specifies how much each received in dividends and capital gain distributions.
D) Capital gains distributions are not taxed.
E) Taxes can be eliminated if you hold your mutual fund shares in your 401(k) retirement account.

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