Investment liquidating trust
Unit investment trusts, along with mutual funds and closed-end funds, are defined as investment companies.
Investment companies offer individuals the opportunity to invest in a diversified portfolio of securities with a low initial investment requirement.
A unit investment trust (UIT) is an investment company that offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time.
Though the Trustees initially anticipated issuing additional partial distribution payments, it has been determined that a single final distribution will be made upon repayment of the balance due under the Note.
A UIT, for example, pays the interest income on the bonds and holds the portfolio until a specific end date when the bonds are sold and the principal amount is returned to the owners.
A bond investor can own a diversified portfolio of bonds in a UIT, rather than manage interest payments and bond redemptions in a personal brokerage account.
Many investors prefer to use mutual funds for stock investing so that the portfolio can be traded.
If an investor is interested in buying and holding a portfolio of bonds and earning interest, that individual may purchase a UIT or closed-end fund with a fixed portfolio.
A RIC is a corporation in which the investors are joint owners, and a grantor trust grants investors proportional ownership in the UIT's underlying securities.