California UIT Attorney
How Do Unit Investment Trusts Work?
Unit investment trusts are investment companies that are similar to mutual funds in that they invest capital into various stocks on the market. UITs also have some very distinct differences, however. Unit investment trusts refer to units rather than
stocks, and these units cannot be traded during the term of the investment. UITs generally have a fixed term ranging anywhere from 1 to 30 years, and can invest in a range of stocks,
bonds and other securities. Another important difference between mutual funds and UITs is that the latter may focus on specific areas of investment whereas mutual funds must diversify in adherence to regulations. Unit investment trusts are very complicated in comparison to other investment products, and a California securities arbitration attorney should always be consulted in the event of a loss.
Due to the fact that unit investment trusts are permitted to focus on specific stocks rather than diversify the portfolio, the risk of loss can potentially be very high. Industry professionals may have ulterior motives in their encouragement of investors to move forward with a UIT. High commissions and hidden, excessive fees may be overlooked by brokerage firms or investment advisors who actively engage in misrepresentation and omission or simply did not put in the necessary research before making a recommendation. This type of
negligence is a form of
fraud, and the industry professionals who engage in this unethical behavior may be guilty of a
breach of fiduciary duty.
Find a UIT Lawyer in California
The Law Offices of Jonathan W. Evans & Associates is an expert-level securities firm that focuses on protecting the rights of public investors who have lost substantial sums due to poorly-recommended or mismanaged investments. As our firm's main attorney, Jonathan W. Evans has over 35 years of experience representing clients in the pursuit of lost investments through securities arbitration,
securities mediation and
securities litigation where appropriate. We have a well-versed knowledge of federal and
state securities laws, and have worked to achieve favorable settlements for many of our clients. Our firm has established a strong foundation for success by working closely with clients in the process of
recognizing investment losses, and then delivering claims that make sense. Our practice is focused on assisting public investors in California, across the United States and globally as well.
Contact a California UIT lawyer
if you have suffered substantial losses from a unit investment trust and want to recover your lost investment.