What is the one difference between a Republic and a Democracy
1 point

The major difference between a democracy and a republic is that a republic is a form of government whereas a democracy is an ideology that helps shape how a government is run.

the answer is: must pay taxes on profits

since it is considered as a part of your income, profits from investments is eligible for tax payment.

the tax from your investment could be influenced by how long you decided to sell it. united states promotes keeping your investment for long term period. so, the tax rate for investments that you sell in less than one year is typically higher compared to investments that you sell in more than one year period.