Investors who want to liquidate their holdings in a unit investment trust may ________.

Question

Quizplus · Accepted Answer

Investors who want to liquidate their holdings in a unit investment trust can sell their shares back to the trustee at net asset value, which is the value of the underlying securities held by the trust divided by the number of shares outstanding. This provides a fair and accurate price for the shares being sold back. Selling on the open market may result in a higher or lower price than the net asset value, while selling back to the trustee at a discount or premium to net asset value would not be a fair price for the shares.

Investors Who Want to Liquidate Their Holdings in a Unit