Variable Annuities
During the accumulation phase of a variable annuity, an investor purchases:
During the accumulation phase, investors purchase accumulation units. Upon annuitization, these are converted to a fixed number of annuity units.
Complete Analysis & Legal Rationale
During the accumulation phase, investors purchase accumulation units. Upon annuitization, these are converted to a fixed number of annuity units.
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.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
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.