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SIE practice questionmediumUITs - Redeeming

If an investor wishes to redeem units in a UIT prior to termination, they:

  1. AReceive a fixed price set at purchase
  2. BMust sell to another investor on an exchange
  3. CCan only redeem at trust termination
  4. DRedeem at the next calculated NAV with the issuer or sponsor✓ Correct answer
Explanation

Why D — Redeem at the next calculated NAV with the issuer or sponsor

Investors can redeem units at the next calculated NAV with the sponsor. UITs generally aren't exchange-traded; early redemptions are possible, and price fluctuates.

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