Unit Investment Trust (UIT)
A fixed, unmanaged portfolio with a set termination date.
What is Unit Investment Trust (UIT)?
Buys a fixed portfolio and holds it, so it is supervised rather than actively managed. It has no board of directors and no investment adviser. Units are redeemable, and the trust dissolves on a stated date.
Unit Investment Trust (UIT): a worked example
A 15-month UIT holding 30 dividend stocks, distributed to unitholders when it terminates.
More terms in Equities, Funds & Alternatives
Shareholder Rights (Statutory vs. Cumulative Voting)
Voting, preemptive rights, dividends when declared, inspection, limited liability.
Types of Preferred Stock
Cumulative, convertible, callable, participating, and floating-rate preferred.
American Depositary Receipt (ADR)
A dollar-denominated receipt for foreign shares, traded in the US.
Rights vs. Warrants
Rights: short-term, below market. Warrants: long-term, above market.
Restricted & Control Stock (Rule 144)
Unregistered or insider-held stock with resale limits.
Employee Stock Options (ISO vs. NSO)
Incentive options get capital gains treatment; nonqualified options create income at exercise.
Technical Analysis
Forecasting prices from charts, trends, and trading volume.
Fundamental Analysis
Valuing a company from its financial statements, management, and industry.