Question #2
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 1
Status: Incorrect
Correct Answer: B
Your Answer: C
Question
Which of the following is most likely to represent a publicly traded real estate debt investment?
Answer Choices:
A. A real estate operating company (REOC)
B. Secured bank debt collateralized by real estate
C. A mortgage real estate investment trust (Mortgage REIT)
Explanation
Mortgage REITs are publicly traded securities that make loans secured by real estate,
therefore they are publicly traded debt investments. REOCs are classified as equity (not
debt) securities, while bank debt is classified as a private rather than public investment.