Practice Quiz

FINRA Series 6

Category - Series 6

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Which of the following statements regarding a unit investment trust (UIT) is false?
  1. A UIT has a fixed number of shares.
  2. UITs are actively managed.
  3. Shares of UITs trade on exchange floors.
  4. All UITs are established with a termination date.
Explanation
Answer: B - The statement that UITs are actively managed is the false statement. All UITs are passively managed. They do have a fixed number of shares that may either be redeemed through the trust or traded on exchange floors, and all UITs are established with a termination date.
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