Index Funds Usually Have Lower Capital Gains on Their Investments

question 102

True/False

Index funds usually have lower capital gains on their investments and therefore are advantageous to investors in higher income tax brackets.

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Definitions:

Tying Contracts

Agreements where the seller conditions the sale of one product on the purchase of another product.

Price Discrimination

The strategy of selling the same product at different prices to different segments of consumers.

Sherman Act

A landmark federal statute passed in the United States to outlaw monopolistic business practices.

Monopolies Illegal

A legal stance or policy where monopolies are prohibited due to their potential to limit competition, raise prices, and reduce choices for consumers.