Prev NEXT  

Advertisement

10 Aggressive Investments

1

REITs (Real Estate Investment Trusts)

Real Estate Investment Trusts, or REITs, are real estate companies that offer common shares to the public and return the profits to shareholders as dividends. Unlike buying stock in a single company, an REIT investor is buying a portion of a managed pool of real estate [source: Forbes]. As the properties in that pool begin to make money through property sales, rentals or leases, the REIT distributes the profits to investors.

While aggressive investors appreciate the potential for high return on investment and long-term growth that REITs offer, the single focus on property ownership means that they are extremely vulnerable to the ups and downs of the real estate market.

Advertisement

Related Articles

Sources

  • Beattie, Andrew. Investopedia.com. "Market Crashes: The Dotcom Crash." (Dec. 13, 2010)http://www.investopedia.com/features/crashes/crashes8.asp
  • Caplinger, Dan. The Motley Fool. "Tiny Companies with Huge Potential." June 30, 2008. (Dec. 18, 2010) http://www.fool.com/investing/mutual-funds/2008/06/30/tiny-companies-with-huge-potential.aspx
  • Domash, Harry. MSN Money Central "Investing 102: Pick a stock and buy it." (Dec. 13, 2010) http://articles.moneycentral.msn.com/Investing/StartInvesting/Investing102PickAStockAndBuyIt.aspx
  • Fidelity.com. Investment Dictionary. (Dec. 15, 2010)http://wps.fidelity.com/401k/pfp/ie/defini.htm
  • Forbes.com. "The REIT Way." June 30, 2010. (Dec. 18, 2010)http://www.forbes.com/2010/06/30/real-estate-reit-personal-finance-reit-way.html
  • Investopedia. "Options Basics: What are Options?" (Dec. 18, 2010)http://www.investopedia.com/university/options/option.asp
  • McClure, Ben. Investopedia.com. "Investing Beyond Your Borders." (Dec. 18, 2010)http://www.investopedia.com/articles/stocks/04/121404.asp
  • McGrath, Jane. "How Junk Bonds Work." HowStuffWorks.com. (March 1, 2011) https://money.howstuffworks.com/personal-finance/financial-planning/junk-bond1.htm
  • Wherry, Robert. SmartMoney.com. "Only Two Microcap Funds Make Our Cut." April 18, 2008. (Dec. 18, 2010) http://www.smartmoney.com/investing/mutual-funds/only-two-microcap-funds-make-our-cut-22915/

UP NEXT

How to Get the Best Deal on Your Mortgage Refinance

How to Get the Best Deal on Your Mortgage Refinance

Mortgage refinance rates can vary from lender to lender. So, how do you know that you've got the best rate you can?


Advertisement

Advertisement

Advertisement

Advertisement

Advertisement

Advertisement


Advertisement


Recommended

Advertisement

Advertisement