CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Which type of publicly traded real estate securities is likely to reinvest its earnings?
A. equity REITs.
B. debt REITs.
C. REOCs
Explanation: This is because they don't have the tax advantage that REITs have. An REOC is more likely to reinvest its earnings into the business, rather than distributing them to unit holders like REITs do. Investors in an REOC seek capital gains rather than passive cash flows.

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