Which of the following sell beneficial shares that are traded in the stock markets and thereby permit small investors to invest in a diversified portfolio of real estate?
A) Real estate investment trusts
B) Real estate mutual funds
C) Land diversification trusts
D) Investment land diversifications

Question

Quizplus · Accepted Answer

Real estate investment trusts (REITs) are companies that own or finance income-producing real estate and are required to distribute at least 90% of their taxable income to shareholders. Their shares are traded on stock exchanges, making them accessible to small investors who can invest in a diversified portfolio of real estate. Real estate mutual funds are also a potential option, but REITs are specifically designed for this purpose. Land diversification trusts and investment land diversifications are not commonly used investment vehicles and may not provide the same level of diversification or accessibility as REITs.

Which of the Following Sell Beneficial Shares That Are Traded