An investor in a mortgage REIT is basically buying equity shares of an entity whose assets are mainly mortgages.

Question

Quizplus · Accepted Answer

A mortgage REIT (real estate investment trust) invests in mortgages and other real estate-related assets, and earns income from the interest on these investments. By buying equity shares of a mortgage REIT, an investor is essentially investing in a portfolio of mortgages and other real estate assets managed by the REIT. Therefore, the statement is true.

An Investor in a Mortgage REIT Is Basically Buying Equity