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Question
Which of the taxes is applied on cross border flow of profits made in the share market?
Which of the taxes is applied on cross border flow of profits made in the share market?
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Solution
The correct option is C Tobin Tax
Tobin tax is a tax on spot currency conversions that was originally proposed with the intention of penalizing short-term currency speculation. Tobin tax is designed to deter only speculative flows of hot money, money that moves regularly between financial markets in search of high short-term interest rates. It is not meant to impact long-term investments.
Tobin tax is a tax on spot currency conversions that was originally proposed with the intention of penalizing short-term currency speculation. Tobin tax is designed to deter only speculative flows of hot money, money that moves regularly between financial markets in search of high short-term interest rates. It is not meant to impact long-term investments.
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