Individuals Can Invest in REITs

Individuals Can Invest in REITs

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Question

Individuals can invest in REITs:

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Explanations

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A. B. C. D.

D

Real Estate Investment Trusts (REITs) are a type of investment that allows individuals to invest in real estate without directly owning property. REITs are companies that own, operate, or finance income-producing real estate properties.

To answer the question, individuals can invest in REITs through both option A and option B, which means the correct answer is C.

Option A: By purchasing REIT shares directly on an open exchange, investors can buy and sell shares of publicly traded REITs just like any other stock. This is the most common way individuals invest in REITs.

Option B: Investing in a mutual fund that specializes in public real estate can also be a way to invest in REITs. Mutual funds pool money from multiple investors to buy shares of REITs, which provides diversification across different properties and companies.

Option D, "Either A or B; it depends," is not a correct answer because it implies that there is a condition or scenario that determines which option is appropriate. However, there are no specific circumstances that would limit an individual to choose only one of these options. Instead, investors may choose to use both options or select one based on their investment objectives and preferences.

In summary, individuals can invest in REITs through both purchasing shares directly on an open exchange and investing in mutual funds that specialize in public real estate.