SIE practice questionhardInvestment Company Act of 1940 - UITs
Which feature distinguishes a Unit Investment Trust (UIT) from mutual funds and closed-end funds?
- AUITs are actively managed
- BUITs issue shares that trade on exchanges
- CUITs are unmanaged after creation✓ Correct answer
- DUITs continually redeem shares from investors at NAV
Explanation
Why C — UITs are unmanaged after creation
UITs are fixed portfolios and are not managed once created. Mutual funds are actively managed and redeem shares; closed-end funds trade on exchanges. UITs are therefore unique in being unmanaged.
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