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).
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Companies & Packaged Products questions
- Which of the following best describes an equity REIT?
- A distinguishing characteristic of a unit investment trust (UIT) compared to a mutual fund is that a UIT:
- A hybrid REIT combines the features of which two types of REITs?
- Why might an investor choose an index ETF over an actively managed mutual fund?