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
A is correct; upon maturity, UITs liquidate their holdings and pay proceeds to investors. B is inaccurate as UITs terminate. C and D do not occur automatically at UIT maturity.
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