To form a unit investment trust, a brokerage firm buys a portfolio of securities which are deposited into a trust. the brokerage firm then sells to the public shares, or "units" in the trust,

Redeemable Trust Certificates

Explanation:

A unit investment trust refers to money pooled from various investors which is further invested in a portfolio.

In most of the cases usually a brokerage firm acts as a sponsor to the issue which purchases a portfolio comprising of various securities deposited into the trust.

Then it issues or sells these securities to the public in the form of units. The people who subscribe or buy these securities are referred to as unit holders as the issued securities are referred to as units,

In return, the unit holders are issued redeemable trust certificates which means they can sell these securities as per their requirement. Usually a unit holder would redeem his units when the price of such units is higher than the price at which he had purchased those units.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: