Which of the Following Statements Is False

question 46

Multiple Choice

Which of the following statements is false?

• A) Unrealized capital gains are taxable.
• B) Realized capital gains are taxable.
• C) Tax-exempt investments are attractive to individuals with high tax liabilities.
• D) Returns comparisons should be made on an equivalent tax basis.
• E) Tax exempt investors prefer tax exempt investments.

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Definitions:

President Barack Obama

The 44th President of the United States, serving from 2009 to 2017, known for being the first African American to hold the office and implementing policies like the Affordable Care Act.

Hostile Takeovers

Hostile takeovers occur when one company tries to acquire another without the consent or cooperation of the target company's management or board.

Targeted Share Repurchases

Also known as greenmail, occurs when a company selectively buys back stock from a potential acquirer at a price that is higher than the market price. In return, the potential acquirer agrees not to attempt to take over the company.

Cumulative Voting

A voting system used in elections, where shareholders multiply the number of shares they own by the number of director positions available to get their total number of votes.