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Again, the amount of this payout varied widely amongst brokers. Why is that. By law, mutual funds must distribute profits from the sale of securities in the fund to the fundholders each year in the form of income dividends andor short- and long-term capital gains, even if the value of their actual mutual fund's NAV drops.

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Event-based (fundamental) momentum traders An event-based or fundamental-based momentum trader makes trading decisions based on market volatility resulting from news or incidents happening in the course of a trading day.

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