Which of the following best describes UITF participants' rights?

The statement that UITF participants own specific investments in the UITF best describes their rights because, in a Unit Investment Trust Fund, participants purchase units representing their stake in a pool of investments managed by a trustee. When investors acquire units in a UITF, they gain proportional ownership of the underlying assets held within the fund. This means that participants can benefit from the performance of those assets, such as stocks, bonds, or other securities included in the UITF portfolio.

In a UITF setup, investors do not directly own the individual securities; rather, they own a share of the collective assets managed by the fund. Therefore, the correct characterization of a UITF participant's rights emphasizes their ownership of these units, which represent their interest in the trust's investments.

Considering this, the other options do not accurately reflect the rights of UITF participants. The second option incorrectly states that participants have no ownership or interest in the UITF, which contradicts the core principle of a UITF where investors actually have a stake in its investments. The third option implies that participants are limited only to the action of liquidating their investments, neglecting their ownership and rights to benefits associated with those investments. Finally, the fourth option suggests that participants have limited rights,