SIE practice questionmediumInvestment Companies - UITs
Which investment company type issues redeemable shares and has a fixed portfolio?
- AOpen-end mutual fund
- BClosed-end fund
- CUnit Investment Trust (UIT)✓ Correct answer
- DVariable annuity
Explanation
Why C — Unit Investment Trust (UIT)
UITs have redeemable shares and a fixed portfolio. Closed-end funds are traded on exchanges; open-end funds have variable portfolios; variable annuities are insurance products.
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