Stock option trading – Tax reporting.
Almost all investment companies advise shareholders of the federal tax status of all distributions, thereby considerably reducing the problem of reporting dividend and capital gains income. 8.Information. Since investment companies are closely regu lated by various agencies of the government and impose self- regulation, a great deal of information is available to the invest ing public, through periodic reports, prospectuses, and industry studies. Although the services discussed herein are of secondary importance to the specific investment goals of the investment company and to the objectives of diversification, professional management and supervision, and continuous investment, they have been of value to shareholders, and may rightfully claimsome of the credit for the growing popularity of investment company shares. Among the several services offered to investors by most investment companies, one of increasing popularity is the accumulation plan.
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