SIE practice questionmediumUITs
Upon maturity, a unit investment trust (UIT) typically:
- ARolls over into a new actively managed fund
- BDistributes the proceeds of the trust’s assets to unit holders✓ Correct answer
- CContinues to operate indefinitely
- DOffers shareholders daily liquidity on an exchange
Explanation
Why B — Distributes the proceeds of the trust’s assets to unit holders
A UIT dissolves at maturity and distributes proceeds. It does not become an active fund (B), operate endlessly (C), or trade like a stock (D).
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