Series 7 - General Securities Representative Exam

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Which of the following is true of a UIT?

It is also known as a fund of funds
A
It is a registered investment company that purchases a variable portfolio or DPPs and holds them in trust
B
It is a registered investment company that purchases a fixed portfolio of securities and holds them in trust
C
It is a registered investment company that purchases a variable portfolio of mutual funds and holds them in trust
D

Explanations

The key word is fixed. The portfolio is not actively traded and has a predetermined expiration date.