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Portfolios 407: Real Estate Investment Trusts (REITs)

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1.
You are most likely to be able to obtain REITs from _______.
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An investment broker. You can buy REITs from the same venues where you might obtain common stock and mutual funds.
2.
A real estate investment trust that invests heavily in equity may offer the investor _______.
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Increased stability. REITs that invest in equity are generally less volatile than those that invest primarily in mortgage loans.
3.
Investors willing to bear a certain amount of risk may receive good yields through a real estate investment trust.
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True. REITs can provide a high yield and a hedge against inflation for investors comfortable with a certain amount of risk.
4.
A real estate investment trust is a company that owns, manages, and/or operates real estate to earn profits for shareholders.
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True. This is why REITs, as they are called, were created.
5.
A real estate investment trust is most likely to focus on the area of _______.
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Equity. More than 90 percent of REITs invest in equity; smaller numbers invest in mortgage loans or a combination of equity and mortgage loans.