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1.
A real estate investment trust that invests heavily in equity may offer the investor _______.
Increased stability. REITs that invest in equity are generally less volatile than those that invest primarily in mortgage loans.
2.
A major difference between a REIT and a real estate limited partnership is that _______.
A REIT is governed by an elected board of directors. A real estate limited partnership, on the other hand, is led by a general manager, who sometimes cannot be easily removed by investors.
3.
One advantage of investing in a real estate investment trust is _______.
The potential for reasonably high dividends. REITs can add considerable income potential to an investment portfolio.
4.
A real estate investment trust is most likely to focus on the area of _______.
Equity. More than 90 percent of REITs invest in equity; smaller numbers invest in mortgage loans or a combination of equity and mortgage loans.
5.
You are most likely to be able to obtain REITs from _______.
An investment broker. You can buy REITs from the same venues where you might obtain common stock and mutual funds.
