SIE practice questioneasyUITs
At the end of a Unit Investment Trust's (UIT) life, investors typically:
- APay a new initial sales charge
- BContinue to receive dividends in perpetuity
- CHave their units converted automatically into mutual fund shares
- DReceive the proceeds from liquidated underlying securities✓ Correct answer
Explanation
Why D — Receive the proceeds from liquidated underlying securities
At termination, a UIT liquidates the underlying securities and distributes the proceeds to unit holders. UITs do not continue indefinitely or automatically convert into mutual fund shares.
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