The correct answer is D) must pay taxes on profits.
People who make money obviating in the stock market must pay taxes on profits.
Although investing in the stock market is a risky game for the many drastic changes it suffers on a daily basis, many people are thrilled to participate in the stock market. If you are an investor in the stock market and receive dividends from those investments, you have to pay taxes because those dividends are considered income by the US government. For instance, when you have a profit selling stocks in one year, that income is taxed at the long term capital gains rate.
