The correct answer is: D. All trade on stock exchanges
Unit investment trusts (UITs) are a type of investment company that issues shares that represent ownership in a basket of securities. UITs are not actively managed, meaning that they do not have a fund manager who buys and sells securities in an attempt to beat the market. Instead, UITs are passively managed, meaning that they simply hold a fixed portfolio of securities for the life of the trust.
Closed-end investment companies (CICs) are also a type of investment company that issues shares that represent ownership in a basket of securities. However, unlike UITs, CICs are actively managed. This means that CICs have a fund manager who buys and sells securities in an attempt to beat the market.
Open-end investment companies (OICs), also known as mutual funds, are a type of investment company that issues shares that represent ownership in a basket of securities. Like CICs, OICs are actively managed. However, unlike CICs, OICs can issue new shares and redeem old shares at any time. This means that the number of shares outstanding in an OIC can change over time.
All three types of investment companies can trade on stock exchanges. However, UITs are the least common type of investment company to trade on stock exchanges. This is because UITs are passively managed and do not have the potential to generate high returns. As a result, there is less demand for UITs on stock exchanges.
CICs and OICs are more common types of investment companies to trade on stock exchanges. This is because CICs and OICs are actively managed and have the potential to generate high returns. As a result, there is more demand for CICs and OICs on stock exchanges.