Question

1. REITs are stocks True False 3. REIT shares can be bought by any investor, just...

1.

REITs are stocks

True

False

3.

REIT shares can be bought by any investor, just like any share of stock

True

False

4.

What does REIT stand for?

Regulated Earnings Investment Total

Real Estate Income Tax

Real Estate Investment Trust

Real Earnings Investment Trust

2.

REITs are fixed income securities

True

False

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Homework Answers

Answer #1

1) A real estate investment trust is a company that owns , operates or finances income generating real estate.

Most of the Reit's are traded on stock exchange like stocks. Therefore in above case answer would be TRUE

2) Most of the REIT's are listed on stock exchange and are traded like stocks. Therefore above statement is TRUE that REIT's shares can be bought by any investor, just like any share of stock.

3) REIT stands for REAL ESTATE INVESTMENT TRUST

4) REIT'S are fixed income securities,

The above statement is False because effectively they are considered to be equities. You are not creditor of REIT when you invest in units of the trust. In adverse market conditions REIT'S get pummeled, while fixed income sails on.

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