Automatic dividend reinvestment O is a requirement of all mutual fund companies. O compounds share ownership. O allows one to defer taxes on this income. O reduces investment yields.
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- Transactions wherein tax-exempt funds compete to purchase shares of stock just prior to their ex-dividend dates, thereby driving up the share prices, are referred to as Group of answer choices dividend laundering wash sales bed-and-breakfast deals tax swapsWhich of the following statements regarding close-end investment companies, if any, is correct?1. Close-end funds continually create new shares as new monies are obtained.2. Close-end funds offer price guarantees a. 1 only.b. 2 only.c. Both 1 and 2.d. Neither 1 nor 2.Which of the following statements regarding dividend reinvestment plans (DRIPs) is true? Group of answer choices DRIPS typically allow shareholders to avoid paying brokerage fees Many DRIPs allow shareholders to purchase shares of the stock at lower-than-market prices all of them Shareholders can avoid taxes that they would have had to pay if they reinvest the dividends through a tax qualified DRIP rather than receiving the cash payment
- Which of the following can be described as involving direct finance? O A. People buy shares in a mutual fund. B. A corporation buys commercial paper issued by another corporation. OC. A pension fund manager buys commercial paper from the issuing corporation. D. Both A and B of the above OE. Both B and C of the above.EFTs have many of the same diversification benefits of ___. A) a share of stock B) an open end mutual fund C) a tax advantaged IRAwhich one is correct please confirm? QUESTION 26 Under dividend reinvestment plans, shareholders can automatically ____. a. transfer from retained earnings accounts to equity accounts. b. use dividends to purchase additional shares c. reduce their taxable income d. increase their cash inflows
- When a stock repurchase occurs, which of the following is not correct?a. EPS decreasesb. Shares are repurchased then cancelledc. Investors may regard this as a tax break compared to a dividend paymentd. Costs in servicing small shareholders may be reducede. All of the above are correctWhich statement(s) below is (are) correct relative to investment companies? (select all that apply) The shares of an investment company will always trade at their NAV. O An investment company enables investors to pool their money with other investors to make diversification more affordable and manageable. O An investment company keeps track of all purchases and sales, of constituent assets, for tax purposes. The shares of an investment company are always redeemable at the fund company who issued the original shares.What is the relative tax advantage of debt when corporate and personal taxes are considered? What is an imputation tax system? Briefly explain the chronology of dividend payment. Discuss different ways in which a firm can pay dividends to its shareholders. Briefly explain the information content of share repurchase. What is an option? Explain the term "call option" and "put option" with an example.
- 1. What is the differences between restricted and unrestricted investment account? (A) Right to commingle funds (B) Right to share profits (C) Right to guarantee returns (D) Right to additional equity sharesIn the context of choosing a share repurchase over declaring dividends, a share repurchase would *a. Decrease available financing whereas declaring dividends increase available financing.b. Increase earnings per share by decreasing the number of shares outstanding.c. Decrease earnings per share by decreasing dividends payabled. invlove all shareholders.which of the following applies to mutual fund trust? a) it has board of directors and shareholders b) it has unitholdes c) it is not efficient at passing through income to investors d) it is always closed end