SIE practice questioneasyUITs
A key characteristic of a Unit Investment Trust (UIT) is that it:
- AIssues variable life insurance contracts
- BAllows for active trading by a portfolio manager
- CHas shares traded on an exchange
- DHolds a fixed portfolio of securities for the life of the trust✓ Correct answer
Explanation
Why D — Holds a fixed portfolio of securities for the life of the trust
A is correct; UITs have a fixed portfolio that is not actively managed. B is characteristic of mutual funds, C of ETFs and closed-end funds, and D is unrelated.
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