SIE (Securities Industry Essentials) Practice Exam 2026 - Free SIE Practice Questions and Study Guide

The significant difference between open-end investment management companies and unit investment trusts (UITs) is that UITs have a fixed portfolio, while open-end companies do not. UITs generally have a fixed number of shares, and therefore a fixed portfolio, while open-end companies can continuously issue and redeem new shares, allowing for a more flexible portfolio. Additionally, UITs usually have a specific end date and do not allow for additional investment amounts, while open-end companies allow for unlimited investment amounts and have no specified end date. While some UITs may offer guaranteed returns, this is not a characteristic that applies to all UITs and is not a defining feature of the investment vehicle.