A UIT Typically Issues Redeemable Securities (Or "Units"), Like a Mutual

question 355

Multiple Choice

A UIT typically issues redeemable securities (or "units") , like a mutual fund, which means:

• A) That the UITs typically will make a one-time "public offering"
• B) A UIT does not activity trade its investment portfolio
• C) That the UIT will, buy back an investor's request at their approximate net asset value
• D) All of these

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually out of profits or reserves.

Working Capital

Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.

Current Ratio

An indicator of financial health showing whether a business can cover its short-term debts with assets that can be quickly converted into cash.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities.