Equity Unit Investment Trust

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Equity Unit Investment Trust

An investment company that contains an unmanaged portfolio of stocks for approximately one year. Investors may buy shares (called units) in the trust and hold them for the year or redeem them from the trust at any time. The units operate much like shares in a mutual fund; the holder is entitled to any capital gains and is responsible for any losses on the portfolio. The main differences are that the portfolio is unmanaged and there is a time limit on the life of the trust. At the end of the year, the trust is either liquidated or rolled over into a new equity unit investment trust. See also: UIT.