Series 6 - Investment Company And Variable Contracts Products Representative Exam
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Dividends are taxable if:
They are taken in cash only
A
They are taken in cash and they are reinvested in the fund
B
They are taken in cash, they are reinvested in the fund and they are considered capital gains
C
They are never taxable only
D
Explanations
Dividends are taxable whether they are taken in cash or reinvested in the fund.