Series 7 - General Securities Representative Exam
Which of the following is TRUE of UITs?
They have a variable portfolio of securities and charge a management feeA
They are extremely liquid - more so than a blue chip stockB
They have a guaranteed rate of return in their prospectusC
They have a fixed portfolio of securities and do not charge a management fee.D
Unit Investment Trusts do not charge a management fee. They have a fixed portfolio of securities. UITs may or may not be tradable on an exchange. Some need to be redeemed directly with the issuer.