SIE practice questioneasyUITs - Fixed Portfolio
A main characteristic of a Unit Investment Trust (UIT) is that it:
- AOffers an unlimited number of shares
- BTrades at market price during the day
- CPays 12b-1 distribution fees
- DHas a fixed portfolio that is not actively managed✓ Correct answer
Explanation
Why D — Has a fixed portfolio that is not actively managed
UITs have a fixed portfolio that is generally not managed after inception. B describes ETFs/CEFs, C is associated with open-end mutual funds, and D applies to open-end funds, not UITs.
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