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 UIT typically holds a fixed portfolio for the life of the trust and is not actively managed. Mutual funds are actively managed, and exchange trading is associated with ETFs and closed-end funds.
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