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Good morning Fools:

Just a quick question: What are the tax consequences of owning shares of QQQ (the Naz 100 index). Is this stock traded as an actively traded mutual fund or a stock in which I may re-invest the dividends and thus postpone paying taxes on any gains.

I am considering buying this stock, and am researching into it. Should anyone know the answer, I invite him/her to email me at <victorfarang@yahoo.com>.
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QQQ is neither a stock nor a mutual fund, though it trades like a stock. The tax consequences are identical to owning a stock with the one exception (that I can think of) that you can short it without waiting for an uptick.

BTW, I don't know where you got the idea that if you reinvest your dividends you postpone paying taxes. Dividends are taxed when received.

Ira
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I don't believe that QQQ pays a dividend.
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