Answer:
Not alter the tax due on the distributions
Explanation:
Open end investment companies are those companies that trades in mutual funds. Money invested in a company is a determinant of an increase or a decrease in shares bought by shareholders. This means that in an open investment company, new stocks are issued when people invest and also buy back the old stocks when shareholders intend to withdrawn their investment.
Where dividends and capital gains are to be reinvested by the investment company, the choice made by them will not alter the tax due on the distributions but it will still be paid upon subsequently redemption.
