Question #13
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 7
Status: Unattempted
Correct Answer: A
Question
Which of the following most accurately identifies one of the advantages of investing in real estate through publicly traded securities?
Answer Choices:
A. Publicly traded corporate structures cost less to maintain
B. Diversification by geography and property type is facilitated
C. Structural conflicts of interest are eliminated
Explanation
One of the advantages of publicly traded real estate securities is that they offer investors
greater potential for diversification by geography, property, and property type.
Disadvantages of publicly traded real estate securities include the costs of maintaining a
publicly traded corporate structure, and the potential for structural conflicts of interest
that can occur between the partnership and REIT shareholders under an UPREIT or
DOWNREIT structure.