Question

People who make money investing in the stock market

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

Answer 1

"must pay taxes on profits." Profits from stocks are considered a form of income, therefore one must pay taxes on said profits.

Answer 2

When you make money from investing in the stock market, you must pay taxes on profits.

What are taxes?

• These are payments to the government from profits and salaries.
• They are used to fund the activities of government.

Cash from the stock market is profit which means that it is liable for taxation so those who make money in such ways need to pay taxes.

In conclusion, option D is correct.

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