Overview

Question 1

Face-amount certificate company

Answer 1

Almost obsolete, used to be used to buy homes. Customer pays a fixed amount, gets a large payout at fixed date

Question 2

Management company

Answer 2

investment company organized as a corporation that issues “shares” of stock

Question 3

Open-end mutual fund

Answer 3

shares cannot be traded, are redeemable with the fund

Question 4

Close-end fund

Answer 4

one-time issuance of stock which then trades. shares are not redeemable

Question 5

Fixed Unit Investment Trust

Answer 5

trust selects a fixed portfolio of securities which it then sells units of to investors. investors receive interest payments and principal payments. once all securities have matured, trust self-liquidates

Question 6

Participating UIT

Answer 6

Trust invests in shares of a mutual fund

Question 7

Variable annuity

Answer 7

customer purchases units until retirement age then can cash out or receive payments