Question

UITs (Unit Investment Trusts) are generally sold to investors in minimum denominations of ________.

A) $100
B) $1,000
C) $10,000
D) $100,000

Answer 1

UITs are typically sold in minimum denominations of $1,000, making them accessible investment options for investors seeking a diversified portfolio without a large initial investment.

Step-by-step explanation:

Unit Investment Trusts (UITs) are generally sold to investors in minimum denominations of $1,000. UITs are a type of investment company offering a fixed portfolio of securities in units to investors.

These units can sometimes be bought at lower amounts if purchased on the secondary market; however, the primary market typically adheres to the standard minimum.

Unit Investment Trusts provide a straightforward option for investors to gain exposure to a diversified portfolio with a relatively low minimum investment threshold compared to other vehicles such as hedge funds or private equity which often have significantly higher entry points.