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Unit Investment Trust (UIT)
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Investment vehicle registered with the SEC
under the Investment Company Act of 1940, that purchases a fixed portfolio
of securities, such as corporate, municipal or government bonds,
mortgage-backed securities, common stock or preferred stock. Units in the
trust are sold to investors by brokers for a sales charge. The trust
expires when bonds mature, or in the case of equity funds, at a specified
future date. Unit holders receive an undivided interest in both the
principal and the income portion of the portfolio in proportion to the
amount of capital they invest.
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