Capital Gains from Mutual Funds Can Be Received If the Mutual

question 89

True/False

Capital gains from mutual funds can be received if the mutual fund makes a profit on the shares it sells or if an individual investor realizes a gain on the sale of mutual fund shares.

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Definitions:

Net Asset Value

The total value of a fund's assets minus its liabilities, often used to determine the value of shares in a mutual fund or ETF.

Year-End Assets

The total value of all assets that a company or individual owns at the end of a fiscal year.

Liabilities

Financial obligations or debts owed by a person or business to others, required to be repaid over time.

Operating Expense Fee

Fees charged by mutual funds and investment companies for the cost of managing the fund, including administrative and management services.