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Investor's activities and losses are transactions that are not very well understood by many people. The reason is because investors incur several types of income

Investor's activities and losses are transactions that are not very well understood by many people. The reason is because investors incur several types of income that have different tax consequences. An investor can incur active, passive and portfolio income.

Can you explain the difference between active income, portfolio income, andpassive income, and provide an example of each. Discuss any limitations an investor may experience.

Note: Defined as you understand them.Avoid giving me a "textbook" answer.We all can google for a definition or finda definition in the textbook, so I want you to tell me what you think, so you can have a better understanding of these instruments. You probably will deal with these type of investments in your personal life, so it would be beneficial to learn them now.

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