Introduction to Unconventional Equities

Our discussion of the stock market would not be complete without an examination of what we might refer to as "unconventional equities." We lump three types of securities into this category: real estate investment trusts (REITs), master limited partnerships (MLPs), and royalty trusts. These securities trade like stocks but carry important differences, particularly with regard to tax treatment. Let’s take a look at the benefits and drawbacks of each security type.