Uits
Which of the following characteristics applies to a Unit Investment Trust (UIT)?
UITs hold a fixed portfolio of securities that is established at creation and does not change. They are unmanaged, have a specified termination date, and do not have a board of directors or investment adviser.
Complete Analysis & Legal Rationale
UITs hold a fixed portfolio of securities that is established at creation and does not change. They are unmanaged, have a specified termination date, and do not have a board of directors or investment adviser.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Federal investment adviser registration and antifraud provisions (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.