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Are there tax implications to owning stock?

Stock sales and dividend payments are activities that are reportable to the Internal Revenue Service (IRS). For sales, you may be subject to capital gains tax if you sell the stock for more than the price at which you purchased it (and losses on stocks may be part of your tax reporting). Proceeds (that is the total, not the net amount) from sales are reported annually on tax form 1099-B. If dividends are paid for a stock you own, they are reported annually on tax form 1099-DIV. You may wish to discuss your personal tax situation with a tax advisor or an accountant. If your stock purchase included a Prospectus, you may find additional tax information related to your investments there.

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