Investment trust(redirected from Split capital investment trust)
Also found in: Dictionary, Thesaurus.
A closed-end fund regulated by the Investment Company Act of 1940. These funds have a fixed number of shares that are traded on the secondary markets, like corporate stock. The market price may exceed the asset value per share, in which case shares are selling at a premium. When the market price falls below the (NAV)/share, shares are selling at a discount. Many closed-end funds are of a specialized nature; the portfolio represents a particular industry or country. These funds are usually listed on US and foreign exchanges.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Unit Investment Trust
An investment company that offers an unmanaged portfolio of stocks and/or bonds, packaging the portfolio as shares that are redeemable from the trust after a certain period of time. Unit investment trusts are designed to give shareholders income from dividends and/or coupons. See also: Mutual fund.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved