SIE practice questionmediumPrivate Equity
A typical characteristic of private equity funds is that they:
- ACan be freely traded on stock exchanges
- BHave long holding periods before liquidity events✓ Correct answer
- CDo not require accredited or institutional investors
- DInvest mainly in short-term money market instruments
Explanation
Why B — Have long holding periods before liquidity events
A is correct; private equity has long lock-up periods. B and C are incorrect—private equity is illiquid and often restricted to accredited investors. D is not the usual investment focus.
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