Melanie owns units of a mutual fund. She receives a cash distribution of $100 from the fund. She believes that she will not be taxed on the distribution if she reinvests it in additional units of the fund. Is she right? a) Yes b) Yes, but only if the mutual fund is constituted as a trust c) Yes, but only if the mutual fund is constituted as a corporation d) No Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Melanie owns units of a mutual fund. She receives a cash distribution of $100 from the fund. She believes that she will not be taxed on the distribution if she reinvests it in additional units of the fund. Is she right? a) Yes b) Yes, but only if the mutual fund is constituted as a trust c) Yes, but only if the mutual fund is constituted as a corporation d) No Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Melanie owns units of a mutual fund. She receives a cash distribution of $100 from the fund. She believes that she will not be taxed on the distribution if she reinvests it in additional units of the fund. Is she right? a) Yes b) Yes, but only if the mutual fund is constituted as a trust c) Yes, but only if the mutual fund is constituted as a corporation d) No
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
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