Discuss Whether the Following Persons Are Currently Engaged in a Trade

question 158

Essay

Discuss whether the following persons are currently engaged in a trade or business:
a.Katerina owns 35 home sites in and around Orlando.She bought these vacant lots several years ago in hopes to developing them into a subdivision.She begins to develop the lots in the current year.
b.John spends 2 hours a day,5 days a week,managing his investment portfolio.He watches the market and buys and sells securities when he thinks the market is right.His investment strategy is to realize dividends,interest,and long-term gains from holding the investments.
c.Bill lives in Miami and works full-time betting on dog races.Although he intends to win large sums,he has failed to win the big one.He considers his betting activities his job and relies on his meager winnings to support his family.He is devoted to the races and has rarely missed a day betting in over 3 years.
b.John spends 2 hours a day, 5 days a week, managing his investment portfolio. He watches the market and buys and sells securities when he thinks the market is right. His investment strategy is to realize dividends, interest, and long-term gains from holding the investments.
c.Bill lives in Miami and works full-time betting on dog races. Although he intends to win large sums, he has failed to win the big one. He considers his betting activities his job and relies on his meager winnings to support his family. He is devoted to the races and has rarely missed a day betting in over 3 years.

Identify the types of fees and charges associated with mutual funds and their impacts on investments.

Recognize the role and influence of rating agencies like Morningstar on mutual funds.

Describe the characteristics, advantages, and limitations of exchange-traded funds (ETFs).

Explain the efficient market hypothesis and its implications for mutual fund investing.

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Definitions:

Wide Discretion

Refers to having a broad scope of judgment or choice available.

Professionalism

The conduct, aims, or qualities that characterize or mark a profession or professional person; often involving competence, skill, and adherence to ethical standards.

Accountability

The obligation of individuals or organizations to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.

Subjectiveness

The quality of being based on or influenced by personal feelings, tastes, or opinions rather than external facts.