9
QuizMultiple Choice

Investment Strategies — Quiz

Question 9 • Economics

People who make money investing in the stock market

Answer
A
have to pay a fee to keep a stock.
B
get certain tax breaks.
C
must pay taxes on profits.
D
should sell quickly to avoid taxes.

Explanation

Profits from selling stocks are generally taxable as capital gains. The tax is typically due when the gain is realized by selling the stock, not simply for holding it. So the correct choice is “must pay taxes on profits”; investors do not pay a fee just to keep a stock, and selling quickly does not necessarily avoid taxes.

AI-written and checked against the verified answer.

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