SIE practice questionmediumUITs
An investor in a UIT can expect which of the following at termination?
- AThe ability to reinvest automatically in a new UIT without any sales charge
- BA final distribution based on the value of the portfolio at maturity✓ Correct answer
- CShares being listed for trading on an exchange
- DRegular reinvestment of principal by portfolio managers
Explanation
Why B — A final distribution based on the value of the portfolio at maturity
At a UIT's termination, investors receive a final distribution based on the value of the portfolio. UITs do not actively reinvest principal, guarantee no-charge rollovers, or become exchange-listed shares by default.
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