Jeffery Davids has invested in something that acts like a mutual fund and that invests in hospitals all over the country.He knows there are federal laws that require this type of investment to distribute at least 90 percent of the income to shareholders and that requires there be at least 100 shareholders.What type of investment has Jefferson made?

Question

Quizplus · Accepted Answer

Jeffery Davids has invested in a Real Estate Investment Trust (REIT), which is similar to a mutual fund but specifically invests in real estate assets, such as hospitals. REITs are required by federal law to distribute at least 90% of their taxable income to shareholders annually and must have a minimum of 100 shareholders.

Jeffery Davids Has Invested in Something That Acts Like a Mutual