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What is an unit investment trusts (uits) ?

What is an unit investment trusts (uits) ?

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An unit investment trust UIT is one of three basic types of investment companies. The other two types are open-end funds (usually mutual funds) and closed-end funds.

Exchange-traded funds (ETFs) are generally structured as open-end funds, but can also be structured as UITs. A UIT invests the money raised from many investors in its one-time public offering in a generally fixed portfolio of stocks, bonds or other securities.

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