Investor Glossary-uitInvestor Glossary-uitInvestor Glossary-uitInvestor Glossary-uitInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

UIT

The HTML to link to this page
 

An investment product that consists of a diversified basket of income-producing securities sold to investors in $1000 units is referred to as a unit investment trust (UIT). The main difference between a UIT and a mutual fund is that a UIT is not actively managed. UIT portfolios containing tax-exempt municipal bonds or mortgage-backed securities purchased and held to maturity are popular with investors who desire a predictable income stream, capital preservation and tax benefits. The life span of a UIT typically ranges from 10 to 30 years. Investors receive quarterly or monthly income over the life of the UIT as well as payments of portfolio principal as the bonds mature. The market value of a UIT fluctuates with the value of the underlying securities and with changes in interest rates.



Rate this UIT definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, APR, liquidity ratio, labor relations, VIX, current ratio, 1031 exchange, balance sheet, ex-dividend, FTSE, risk management, Zero Cost Collar, retained earnings, dividends payable, stock market close, phantom income, diluted share, debt service coverage, required rate of return, 1035 exchange, command economy, inflation, 144a, real GDP, annual return, limit order, deferred tax, stock split, 401a, wholly-owned subsidiary, margin rate, class C shares, option premium, in escrow, open position, deferred revenue, Key Rate Duration, minority interest, per diem, ex-dividend date, covered put, reverse mortgage, cancelled check, average price per share, FICO score, quality assurance, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use