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Exam Series 6 All Questions

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Exam Series 6 topic 1 question 252 discussion

Actual exam question from FINRA's Series 6
Question #: 252
Topic #: 1
[All Series 6 Questions]

One difference between a unit investment trust (UIT) and a closed-end fund is that

  • A. shares of closed-end funds trade on the exchange floors, unlike shares of UITs.
  • B. unlike UITs, closed-end funds have a fixed number of shares.
  • C. the shares of UITs are redeemable, whereas the shares of closed-end funds are not.
  • D. closed-end funds are established with a termination date, unlike UITs.
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Suggested Answer: C 🗳️
A difference between a UIT and a closed-end fund is that the shares of UITs are redeemable, whereas the shares of closed-end funds are not.
Shares of UITs also trade on exchange floors, like the shares of closed-end funds. Both UITs and closed-end funds have a fixed number of shares, but UITs are established with a termination date, while closed-end funds have no termination date.
by lolojepu at April 6, 2025, 1:28 a.m.

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