   
|
|
UIT
|
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
| |
