Final answer:
the correct answer to the student's question is C) REITs, as they are not redeemable but tradeable like stocks on the open market.
Step-by-step explanation:
The student's question pertains to which of the listed securities is not redeemable.
- Variable annuities are insurance contracts that allow for investment in various securities. While they do have features of redemption, the investments are typically meant for the long term, and they do not fall in the same redeemable category as mutual funds or unit investment trusts.
- Mutual funds are investment programs paid for by shareholders that can usually be redeemed on any business day at the current net asset value.
- REITs (Real Estate Investment Trusts) are companies that own or finance income-producing real estate. REITs shares are not 'redeemable' because they are traded like stock; while they can be sold on the open market, there is no provision for redemption.
- Unit investment trusts (UITs) are also redeemable at the current net asset value.