Because There Are No Income Tax Consequences Arising from Trading

question 37

True/False

Because there are no income tax consequences arising from trading investments in a 401(k)plan,it is easy to be lured into market timing,which is generally unsuccessful.

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Definitions:

Cumulative Voting

A voting system in corporate elections that allows shareholders to concentrate all their votes on one candidate for the board of directors.

Illegal Dumping

The improper disposal of waste at a non-approved location.

Duty of Loyalty

is an ethical and legal obligation requiring individuals, often corporate directors or employees, to act in the best interest of their company or employer, avoiding conflicts of interest.

Duty of Care

A legal obligation imposed on individuals or entities requiring adherence to a standard of reasonable care to prevent harm to others.