A benefit of mutual funds that mainly buy stocks and hold them is that
A) the price of the stocks they hold always appreciate.
B) dividend payments on such stocks are not taxed.
C) they help avoid taxes as the capital gains on these stocks are implicit.
D) they promise annual returns of more than 50% of the principal amount.
Correct Answer:
Verified
Q18: A stock index tells you
A)the average price
Q19: Which of the following statements is true?
A)Different
Q20: A stock which was bought for $1,000
Q21: Identify the correct statement from the following.
A)Dividend
Q22: Which of the following statements is true?
A)When
Q24: An investor buys a stock for $1,200
Q25: The idea that stock prices fully reflect
Q26: Which of the following statements is true?
A)Both
Q27: An investor buys stock for $10,000 at
Q28: Realized capital gains are
A)increases in the value
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