Why might the investor in a mutual fund be faced with a potential tax liability arising from

Question:

Why might the investor in a mutual fund be faced with a potential tax liability arising from capital gains even though the investor did not benefit from such a gain?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

See More Books

Question Posted: Mar 02, 2024 05:01 AM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Utilizing resoorces, complete a risk audit of Bank of Americas project to acquire Merrill Lynch. Ensure you address all 10 critical success factors. From the evidence of your audit, would you advise...
Introduction In 2010, New United Motor Manufacturing, Inc., a unique and highly successful joint venture between Americas General Motors and Japans Toyota, went out of business. NUMMI, as the...
An analysis of spending by a sample of credit card bank cardholders shows that spending by cardholders in January (Jan) is related to their spending in December ( Dec): The assumptions and conditions...
At December 31, 2018, Cascade AG had the following deferred tax items. Temporary Differences Resulting Balances in Deferred Taxes 1. Excess of tax depreciation over book...
Which of the following is false? (a) Under IFRS, the term income describes both revenues and gains. (b) Under IFRS, the term expenses includes losses. (c) Under IFRS, firms do not engage in the...
Melissa Khan alleges that on May 27, 2004, she entered into a lease and warranty agreement with Riverbank Motors Corporation, Inc. (the Dealership), for a new, 2004 Volkswagen Toureg (the Vehicle),...
The Meyers Pharmaceutical Company, a drug manufacturer, has the following internal controls for billing and recording accounts receivable: 1. An incoming customer's purchase order is received in the...
Pawan is pursuing MBA and shares a room with you in the private hostel. He desperately needs a job after completing his course because of educational loan and weak economic background. In his last...
Does an investment company provide any economic function that individual investors cannot provide for themselves on their own? Explain your answer.
What are the costs incurred by a mutual fund?
Duck hunting in populated areas faces opposition on the basis of safety and environmental issues. In a survey to assess public opinion regarding duck hunting on Morro Bay (located along the central...
What role do your culture and personal history play in how you experience the arts?
How does Conflict theory elucidate the intricate dynamics of societal stratification and the perpetuation of power differentials among social classes?
How would liquid contact lenses be helpful and beneficial to student-athletes?
Research any top 10 popular advertising agency. make five-paragrapgh presentation to "sell" the agency to a new client.
What was the consequence of splitting land in Zambia into crown land and native reserves? What is the doctrine of tenure? What forms did it take and how did it influence our land law? What is the...
Show that, in a multiple linear regression dataset, h = p.
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
The football coach at a Midwestern university was given a 5-year employment contract that paid $225,000 the first year, and increased at an 8% uniform rate in each subsequent year. At the end of the...
Traffic at a certain intersection is currently 2000 cars per day. A consultant has told the city that traffic is expected to grow at a continuous rate of 5%per year for the next 4 years.
A local bank will lend a customer $1000 on a 2-year car loan as follows: Money to pay for car$1000 Two years' interest at 7%: 2 x 0.07 x 1000140 24 monthly payments = 1140/24 = $47.50$1140 The first...
The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is enough to increase the sales of its product. To investigate, the owner randomly selected eight outlets and sold...
A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million initial outlay on a large-scale integrated plant that would provide expected cash flows of $6.23 million...
Write a quadratic calculator in C++ for the expression: a x + bx+c=0 1. Declare variables a, b, c. Choose arbitrary values for these variable. Make sure that a is not zero and that the expresion...

Why might the investor in a mutual fund be faced with a potential tax liability arising from

Question:

Step by Step Answer:

Foundations Of Financial Markets And Institutions

Students also viewed these Business questions