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Which feature distinguishes a unit investment trust from a management company?

a.A UIT actively trades its portfolio to outperform a benchmark
b.A UIT issues shares that trade on an exchange at a premium or discount
c.A UIT has a board of directors that hires an investment adviser
d.A UIT holds a fixed portfolio, has no board of directors or investment adviser, and has a stated termination date

Giải thích

A unit investment trust is organized under a trust indenture with a fixed, unmanaged portfolio and a preset termination date, so it needs neither a board nor an adviser. Active trading and adviser oversight are hallmarks of management companies. Exchange trading at a premium or discount describes closed-end funds, and UIT units are redeemable.

Trích dẫn luật: Investment Company Act of 1940

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