A mutual fund must distribute ________ to investors in the same year as earned.

Question

Quizplus · Accepted Answer

A mutual fund must distribute both dividends and capital gains to investors in the same year as earned. Dividends are portions of a company's profits that are paid out to shareholders, while capital gains are the profits earned from the sale of securities in the mutual fund's portfolio. Both of these distributions are taxable to the investor.

A Mutual Fund Must Distribute ________ to Investors in the Same