Identify the correct statement regarding traditional public unit trusts.
A)Property unit trusts are usually not listed on an exchange.
B)Public unit trusts are established by financial institutions to earn a spread between the cost of funds and the returns earned on investments.
C)Property trusts mainly buy large commercial real estate such as shopping centres.
D)Most property trusts have an 'open-ended' structure.
E)Most equity trusts have a 'closed-ended' structure.

Question

Quizplus · Accepted Answer

The statement that identifies the correct statement regarding traditional public unit trusts is that property trusts mainly buy large commercial real estate such as shopping centres. Option A is incorrect because property unit trusts may be listed on exchange. Option B is incorrect because public unit trusts can be established by various entities, not just financial institutions. Option D and E are also incorrect as both open-ended and closed-ended structures are present in both property and equity trusts.

Identify the Correct Statement Regarding Traditional Public Unit Trusts