What Important Tax-Based Reason Suggests Why Some Investors Might Prefer

question 59

Multiple Choice

What important tax-based reason suggests why some investors might prefer capital gains?

• A) Investors pay taxes only on dividends, not on capital gains.
• B) Investors pay capital gains taxes as their stock appreciates, not at the time of sale, so they will be indifferent to selling the stock.
• C) Investors who don't need or want any cash will not accept their dividend and they therefore will not incur any obligation to pay taxes.
• D) Investors who don't need or want any cash will not sell their stock and they therefore will not incur any obligation to pay taxes.

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Definitions:

Motor Functioning

The coordination of muscle movements and the physical activities that they enable, such as walking, grasping, or speaking.

Myelination

The process of developing a myelin sheath around the nerve fibers to increase the speed at which information travels between neurons.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex functions like perception, thought, and decision-making.

Motor Pathways

Neural pathways in the brain and spinal cord that control muscle movements.