8
QuizMultiple Choice

Investment Strategies

Question 8 • * HSA 26-27 Economics

People who make money investing in the stock market

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

Explanation

Profits from selling investments, such as stocks, are generally taxable as capital gains. The tax may depend on factors such as how long the stock was held, but investors do not avoid taxes simply by selling quickly. Therefore, the correct choice is “must pay taxes on profits.”

AI-written and checked against the verified answer.

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