Which of the following assets would be MOST appropiate for a TDA in a flat and heavy tax regime? tax exempt bonds high div yield stocks interest bearing, taxable bonds I would have thought C because flat and heavy tax is favourable tax treatment on all but dividend payments. So why is the answer B?
Think of it this way, you want to shield the assets that would be hit the most by the taxman with your TDA. In this case option B will suffer more from being outside a TDA than option C
Ah I see. thanks man…