Canadian Securities Course (CSC) Level 2 Practice Exam 2025 - Free CSC Level 2 Practice Questions and Study Guide

An income trust is indeed characterized as a type of equity ownership vehicle that is established as a trust and issues ownership shares known as units. This structure allows the trust to hold income-generating assets and distribute the income to investors, typically on a monthly or quarterly basis. Investors receive distributions from the trust that reflect the income generated from the underlying assets, which can include real estate, energy, or other investment assets.

While the other options describe various financial instruments or structures, they do not accurately define an income trust. For example, prepackaged securities that combine different types of securities do not align with the fundamental characteristics of an income trust. Similarly, the description involving a claim to a pool of assets applies more broadly to investment funds but does not capture the specific nature of income trusts, which focus on regular income distributions. Lastly, dividing attributes of shares and dividends, while relevant to some financial concepts, doesn’t encapsulate the essence of an income trust’s function and structure.