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Exam Series 6 All Questions

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Exam Series 6 topic 1 question 111 discussion

Actual exam question from FINRA's Series 6
Question #: 111
Topic #: 1
[All Series 6 Questions]

Which of the following describes a difference between a unit investment trust (UIT) and a mutual fund?

  • A. UITs have a fixed number of shares; mutual funds do not.
  • B. UITs are not required to distribute dividends and capital gains to their shareholders as mutual funds must.
  • C. UITs must hold non-diversified portfolios; mutual funds may be either non-diversified or diversified.
  • D. All of the above describe differences between a UIT and a mutual fund.
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Suggested 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.
by lolojepu at April 6, 2025, 1:17 a.m.

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