A Unit Investment Trust (UIT) differs from an open-end mutual fund primarily because a UIT:

A Unit Investment Trust (UIT) differs from

Multiple choice — select the best answer

AContinuously issues new shares and actively manages its portfolio
BTrades on a stock exchange at a premium or discount to NAV
CCharges a 12b-1 distribution fee to fund ongoing marketing
DHas a fixed, unmanaged portfolio and a stated termination date

✓ Correct answer: D. Has a fixed, unmanaged portfolio and a stated termination date A UIT is organized with a fixed portfolio of securities and a defined termination date; it does not continuously offer new shares and is not actively managed, distinguishing it from open-end mutual funds.

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Topic: Series 6 (Investment Products)

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A Unit Investment Trust (UIT) differs from an open-end mutual fund primarily because a UIT:

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