Rena purchased 200 shares of a no load stock mutual fund. During the year she received $ 3 per share in dividend distributions, $ 200 in long term capital gain distributions, and capital gains of $ 1,100 when she sold the stock after owning it eight months. What are the tax consequences of Rena’s ownership of this stock fund? Rena is in a 35% marginal tax bracket.
Dividend A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Hunter invested $ 7,000 in shares of a load mutual fund. The load of the fund is 7%. When Hunter purchased the shares, the NAV per share was $ 70. A year later, Hunter and why? sold the shares at a NAV of $ 68 per share. What is Hunter’s return from selling his shares in the mutual fund?
In the past, some mutual funds often engaged in a practice called “afterhours trading” that allowed some of their larger shareholders to reap profits or avoid losses in a manner not available to all investors. To understand how this practice works, one must remember that mutual fund prices...