SIE practice questionhardInvestment Company Act of 1940 - UITs
Which feature is unique to Unit Investment Trusts (UITs) compared to mutual funds and closed-end funds?
- AUITs actively manage their portfolios
- BUITs can continuously issue and redeem shares
- CUITs are traded on exchanges
- DUITs have a fixed, unmanaged portfolio for their life✓ Correct answer
Explanation
Why D — UITs have a fixed, unmanaged portfolio for their life
UITs have fixed, unmanaged portfolios until maturity. Mutual funds are actively managed and can issue/redeem; closed-ends are traded on exchanges.
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
- A customer wants to invest in a professionally managed, diversified portfolio with no sales charges on purchases or…
- Which investment company type issues redeemable shares and has a fixed portfolio?
- A registered representative recommends a speculative small-cap stock to a risk-averse retiree. Which principle is most…
- A broker recommends high-yield bonds to a conservative investor. Which rule does this potentially violate?