Which statement about the basis of mutual fund shares is true?

The correct statement about the basis of mutual fund shares is that all of the statements listed are indeed true.

The average basis method allows investors who purchase mutual fund shares at different times and different prices to calculate their basis in shares effectively. This method averages the cost of all shares owned in the mutual fund, simplifying the record-keeping process; it provides a consistent approach to determining gains or losses when shares are sold.

The single-category method, referenced in the second statement, is a specific approach to calculating the average basis for mutual funds. This method streamlines the process of determining the average basis for shares held, further emphasizing how mutual funds can be treated differently from other types of investments.

Finally, the comparison with other securities indicates that, although unique rules often apply to mutual funds, investments made in them can also follow similar basis calculation processes as other securities. For example, when selling shares of a mutual fund, investors may use specific identification, FIFO, or average cost methods to determine their basis, mirroring practices in the broader securities market.

In summary, each of these statements highlights different but accurate methods or approaches for determining the basis of mutual fund shares, leading to the conclusion that all statements collectively provide a complete understanding of the topic.