Learn More About Unit Investment Trusts (UITs)
If you are an investor, you may be familiar with the term Unit Investment Trust (UIT). This is one of the three basic types of investment companies, the other two being closed-end funds and mutual funds.
Traditional characteristics of UITs include:
- Much like closed-ended funds, UITs make one-time public offerings of a fixed number of units.
- The termination date of the UIT is established upon the fund’s creation. Some termination dates may be more than 50 years after the UIT is created. Upon termination, remaining securities in the fund are sold and the proceeds are distributed among the investors.
- During the life of the trust, there is no board of directors, investment advisers or corporate directors giving advice about the UIT.
You can learn more about UITs on this page of the U.S. Securities and Exchange Commission website.
Remember, the information on this page is only intended for general informational purposes, not investment advice. To speak with an experienced lawyer about a UIT or any investment-related matter, contact Russell L. Forkey online or by telephone at 954-514-9605.