Answer: c. taxes on capital gains can be timed
Explanation:
Capital gains represent an appreciation in the value of a security therefore they bring in profit to the owners of that security. Capital gains are not taxed until the owner sells the security which means that these taxes can be timed by the owner who can decide to sell at specific times to reduce their tax bill.
This is different from dividends that are taxed as soon as the company declares them. The investors have no say as to the tax timing so they will prefer capital gains where they have some form of control.
