SIE practice questionmediumInvestment Company Act: UITs
A unit investment trust (UIT) differs from a mutual fund because a UIT:
- ADoes not allow investors to redeem shares
- BActively manages its portfolio
- CTrades shares on an exchange
- DIssues redeemable units and has a fixed portfolio✓ Correct answer
Explanation
Why D — Issues redeemable units and has a fixed portfolio
UITs have fixed portfolios and issue redeemable units, while mutual funds may be actively managed. UIT units are redeemable; closed-end funds, not UITs, trade shares on an exchange.
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