What is a real estate investment trust REIT )? Quizlet?
*A real estate investment trust (REIT) is a company that pools its capital to purchase properties and/or mortgage loans. Investors buy REIT shares and, in turn, receive dividends from investment income or capital gains distributions. REIT shares are traded on exchanges much like the stocks of other companies.
Which of the following would the FDIC most likely not insure?
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.
Why REITs are a bad investment?
The biggest pitfall with REITs is they don’t offer much capital appreciation. That’s because REITs must pay 90% of their taxable income back to investors which significantly reduces their ability to invest back into properties to raise their value or to purchase new holdings.
Are REITs a good long-term investment?
REITs are total return investments. They typically provide high dividends plus the potential for moderate, long-term capital appreciation. Long-term total returns of REIT stocks tend to be similar to those of value stocks and more than the returns of lower risk bonds.
Which of these is an advantage of investing in a real estate investment trust REIT )?
REITs offer investors the benefits of real estate investment along with the ease and advantages of investing in publicly traded stock. REITs have historically provided investors dividend-based income, competitive market performance, transparency, liquidity, inflation protection and portfolio diversification.
Which type of REIT is considered the most popular and accounts for about 90% of all REITs?
Like equity REITs, mortgage REITs are required to distribute at least 90% of their income to shareholders. Both equity REITs and mortgage REITs may be listed on major stock exchanges, but they can also be traded privately. Of the two, equity REITs are far more common, accounting for roughly 90% of the REIT market.
Which of the following describes a real estate investment trust?
Which of the following best describes a Real Estate Investment Trust? Investors own shares in a trust that receives 75% of its income from real estate investments.
What are the two types of real estate investment trusts?
The two main types of REITs are equity REITs and mortgage REITs, commonly known as mREITs. Equity REITs generate income through the collection of rent on, and from sales of, the properties they own for the long-term. mREITs invest in mortgages or mortgage securities tied to commercial and/or residential properties.
Which type of REIT invests directly in income producing real estate quizlet?
They invest primarily in real estate and mortgages; excess funds can be invested in securities, such as U.S. Governments and the shares of other REITs (however, under the tax code, at least 75% of the REIT’s assets must be invested in real estate or mortgages). An equity REIT invests in income producing real estate.
Which type of real estate investment trust derives a portion of its income from interest dividends quizlet?
Mortgage REITs are often owners of real estate mortgage trusts (REMT) and derive a portion of their income from interest dividends. Which type of bond is used to pay for community improvements? Municipal bonds are used for community improvements, such as schools, street improvements, etc.