Jefferson Davis has invested in something that acts like a mutual fund and that invests in properties 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

Jefferson Davis has invested in a real estate investment trust (REIT), which is a type of investment that pools money from multiple investors to invest in a diversified portfolio of real estate properties. REITs are required by federal law to distribute at least 90 percent of their income to shareholders and must have at least 100 shareholders. Option A) foreclosures, C) limited partnerships, D) participation certificates, and E) direct investment do not have the same requirements under federal law as REITs.

Jefferson Davis Has Invested in Something That Acts Like a Mutual