FINRA Series 7 Exam Prep

Category - Series 7

A mutual fund characterized by a modest sales charge and an investment in a fixed portfolio of municipal securities is a:
  1. face-amount certificate company
  2. unit investment trust company
  3. management company
  4. open-end or closed-end company
Explanation
Answer: B - unit investment trust company. This is an example of a fixed trust, which is a type of unit investment trust.
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