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Canadian Securities Course (CSC) Practice Exam · Question

Which of the following is a key characteristic of a Real Estate Investment Trust (REIT)?

REITs are companies that own or finance income-producing real estate across a range of property sectors. They trade on major exchanges like stocks and typically

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Question: Which of the following is a key characteristic of a Real Estate Investment Trust (REIT)?

Answer options:

  • They directly purchase and manage physical properties, but are not publicly traded. ✅ They are companies that own, operate, or finance income-generating real estate and are publicly traded.
  • They are tax-exempt entities that only invest in residential mortgages.
  • They are leveraged funds that focus exclusively on raw land development.

Correct answer: They are companies that own, operate, or finance income-generating real estate and are publicly traded.

Explanation: REITs are companies that own or finance income-producing real estate across a range of property sectors. They trade on major exchanges like stocks and typically distribute most of their taxable income to shareholders as dividends.

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