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Unit Investment Trust - UIT

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Unit Investment Trust - UIT
A registered trust in which a fixed portfolio of income-producing securities are purchased and held to maturity. Commonly used with municipal bonds, investors receive an undivided interest of the portfolio's principal as well as income proportionate to the amount they invested.

Notes:
Each unit typically costs $1,000 and is sold to investors by brokers. UITs can be resold in the secondary market.


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