Complete Guide To Investment Companies, Funds And REITs

AAA

Real Estate Investment Trusts (REITs) - Real Estate Investment Trusts

A real estate investment trust (REIT) is a dividend-paying stock that focuses on real estate. REITS accumulate a pool of money through an initial public offering (IPO), which is then used to buy, develop, manage and sell assets in real estate. The IPO is identical to any other security offering with many of the same rules regarding prospectuses, reporting requirements and regulations; however, instead of purchasing stock in a single company, the owner of one REIT unit is buying a portion of a managed pool of real estate. This pool of real estate then generates income through renting, leasing and selling of property and distributes it directly to the REIT holder on a regular basis.

Shares are offered to the public via the major exchanges. In this way, a REIT is similar to any other stock that represents ownership in an operating business. Each share REIT represents a proportionate fraction of ownership in each of the underlying properties. Unlike commons stock however, REITs are similar to mutual funds in that they must distribute most of its profits as dividends.

Equity And Mortgage REITs
Related Articles
  1. With its huge population and booming economy, China is tops for many emerging markets investors. Here's a leveraged ETF for those who want to double down.
    Stock Analysis

    This Leveraged ETF Is For China Bulls

  2. These ETFs are an excellent place to start for any investor interested in betting on Latin America.
    Mutual Funds & ETFs

    Interested In Latin America? Eye These ...

  3. A brief article with strategies on how to retire by owining real estate assets and living out of rent
    Retirement

    Could Being A Landlord Pay For Your ...

  4. Investing Basics

    A Look At The Most Popular Bitcoin Exchanges

  5. With more ETFs to trade, the risks associated with these investments have grown. To mitigate these risks, ETF options are a hedging strategy for traders.
    Mutual Funds & ETFs

    ETF Options Hedge Risk of ETF Trades

Trading Center