The following are true about taxation on stocks: 1.Earnings by REITS are taxed at both the corporate level and at the taxpayer level. 2.Short-term capital gains and all dividends are always taxed at the same rate. 3.Increases in the market value of a stock over purchase price generate capital gains when the stock is sold. 4.Because capital gains are not taxed, most investors discourage the distribution of dividends. Select one: a. 3 only b. 2 and 3 c. 1 and 2 and 3 d. 3 and 4