Unit investment trust is a type of investment company organized as a trust to invest in a portfolio of securities. The UIT sells redeemable securities to investors in the form of shares or units of beneficial interest.
Applying "Unit Investment Trust / UIT" to Securities Exams:
A UIT may be created to invest in a fixed portfolio of bonds or in a non fixed portfolio of mutual funds. The securities purchased by the UIT are held in trust for the investors and the investors will purchase and redeem share of beneficial interest in the portfolio.