There Are Two Major Types of REITs: Equity REITs and Mortgage

Multiple Choice

There are two major types of REITs: Equity REITs and Mortgage REITs. Each differs in terms of what they invest in. Which of the following choices best describes the investment focus of an Equity REIT?

A) Invests a significant percentage of their assets in both properties and mortgages
B) Invests primarily in and operates commercial properties
C) Purchases mortgage obligations
D) Purchases ownership interests in shares of pension funds and life insurance companies