TeenAnalyst.com

REIT - Definition
Below, you'll find a definition of this investing term...

Definition: A security that trades as a stock on the stock exchange, but invests in real estate and/or mortgages.

TeenAnalyst Advice: REIT's are special trusts that receive tax advantages from the government.  They're obligated to pay out 90% or more of their earnings to investors in the form of dividends so it's not unusual to see a REIT with a 10-12% dividend.

An equity REIT invests in and owns various real estate properties.  Their revenues come from people renting places in those buildings.

A mortgage REIT invests in mortgages on real estate.  Their revenues come from the interest paid on the mortgages.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Stocks - Learn about investing in the stock market.

 

# - A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z