Practice Quiz

FINRA Series 6

Category - Series 6

Start a Study Session Sign up for Question of the Day
Which of the following describes a difference between a unit investment trust (UIT) and a mutual fund?
  1. UITs have a fixed number of shares; mutual funds do not.
  2. UITs are not required to distribute dividends and capital gains to their shareholders as mutual funds must.
  3. UITs must hold non-diversified portfolios; mutual funds may be either non-diversified or diversified.
  4. All of the above describe differences between a UIT and a mutual fund.
Explanation
Answer: A - The difference between a unit investment trust and a mutual fund is that UITs have a fixed number of shares; mutual funds do not. Both UITs and mutual funds are required to distribute dividends and capital gains to their shareholders and both may invest in either diversified or non-diversified portfolios.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz