Question

Please match the type of investment firm with their usual investment goals and strategies

1. REIT Equity trust

2. REIT Mortgage Trust

3. Hedge Funds  

4. Open ended mutual fund

[ Choose ]           

a. Frequently invested in as a slightly higher risk and higher return checking account

b. Will always repurchase their own shares at a price determined by the value of the assets they hold           

c. Makes construction and mortgage loans           

d. Privately held and lightly regulated, often focuses on illiquid or nonstandard assets           

e. Issues securities to finance government projects           

f. Directly owns real estate      

Please match the securities on the left with their attributes on the right

1. Equity  

2. Stock market index   

3. Preferred shares

4. Money market securities

5. Corporate Bonds

[ Choose ]           

a. Owners of this security are paid before equity holders but after bondholders           

b. Allow you to bet on the future price of other securities           

c. Commonly tracked as a measure of overall economic performance           

d. Mostly held for liquidity reasons           

e. Frequently classified as investment grade versus "junk"

f. Holders of this security get to vote on large decisions affecting the firm

g. Virtually immune to default      

Answer 1

1. REIT Equity trust : Directly owns real estate

2. REIT Mortgage Trust : Makes construction and mortgage loans   

3. Hedge Funds : Privately held and lightly regulated, often focuses on illiquid or nonstandard assets   

4. Open ended mutual fund : Will always repurchase their own shares at a price determined by the value of the assets they hold

1. Equity : Holders of this security get to vote on large decisions affecting the firm

2. Stock market index : Commonly tracked as a measure of overall economic performance

3. Preferred shares : Owners of this security are paid before equity holders but after bondholders   

4. Money market securities : Mostly held for liquidity reasons

5. Corporate Bonds : Frequently classified as investment grade versus "junk"