unit investment trust

unit investment trust definition - business

unit investment trust

An unmanaged portfolio of investments assembled by an investment adviser and sold in units to investors by brokers. Units of a trust usually sell for $1,000 including a sales commission of approximately 4% at the time of the initial offering. Sponsoring brokers usually maintain a secondary market for the units, the value of which depends on the value of the securities held by the trust. Also called fixed trust.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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