Series 7 - General Securities Representative Exam
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Capital Gains Distributions from mutual funds as capital gains can be all of the following EXCEPT
Reinvested in the fund
A
Taken as cash
B
Sent to another mutual fund
C
Dividends
D
Explanations
Capital gains distributions from mutual funds occur when the fund manager sells an asset in the fund's portfolio at a profit. They can be reinvested, taken as cash, and in many fund families, invested in another fund. Dividends are paid only when a portfolio asset pays dividends or interest