Unit investment trust

For the UK fund types, see Unit trust and Investment trust.

In U.S. financial law, a unit investment trust (UIT) is an investment product offering a fixed (unmanaged) portfolio of securities having a definite life. Unlike open-end and closed-end investment companies, a UIT has no board of directors.[1] A UIT is registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and is classified as an investment company.[2] UITs are assembled by a sponsor and sold through brokerage firms to investors.[3]

  1. ^ Lemke, Lins and Smith, Regulation of Investment Companies, §4.03 (Matthew Bender, 2014 ed.).
  2. ^ John Downes and Jordan Elliot Goodman (2003). Barron's finance & investment handbook (6th ed.). Barron's Educational Series. p. 927. ISBN 978-0-7641-5554-3.
  3. ^ Darren W. Oglesby (2006). Concise encyclopedia of investing. Psychology Press. p. 76. ISBN 978-0-7890-2344-5.