Investing Dictionary
Basics

What is REIT?

A company that owns real estate you can buy like a stock

Full Explanation

Real Estate Investment Trusts let regular investors own a piece of commercial real estate — malls, apartments, office buildings — without buying property. REITs must pay out at least 90% of taxable income as dividends.

Real-World Example

Buying shares of a REIT is like owning a tiny piece of a shopping mall.

Pro Tip

Great for income investors — typically high dividends.

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