Abstract
The private investor with only a small sum available and having little or no understanding of the mechanisms of the Stock Exchange may be reluctant to stake the whole of his capital in one company. It will be little comfort for him to learn that prices of stocks and shares rise as well as fall, if he is forced to sell his holding to meet a commitment just at the time when the stock market is depressed. Yet the savings of the small investors, when aggregated, represent a large sum and it was with this in mind that Unit Trusts were created. In essence, a large batch of specified stocks, usually equities, is purchased in a block, or unit. The unit is then broken down into a large number of marketable sub-units which are offered to members of the public.
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