____ are received as current income while one owns shares in a mutual fund.

Question

Quizplus · Accepted Answer

When an investor owns shares in a mutual fund, they receive both ordinary income dividend distributions and capital gains distributions as current income. Ordinary income dividend distributions are the earnings from the mutual fund's investments in dividends and interest, while capital gains distributions are the profits from the sale of securities within the mutual fund's portfolio. Therefore, option A is the correct answer. Option B is incorrect as capital growth is not received as current income, but rather as an increase in the value of the mutual fund's shares. Option C is also incorrect as it only mentions capital gains distributions and capital growth, leaving out the important ordinary income dividend distributions. Option D is also incorrect as it only mentions dividend distributions, leaving out the capital gains distributions.

____ Are Received as Current Income While One Owns Shares