EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is an Equity REIT?
Equity REITs are the more traditional version of Real Estate Investment Trusts, which invest solely in income-producing properties and operate similar to a mutual fund.
When investing in Real Estate Investment Trusts (REITs) investors have a choice between equity REITs, mortgage REITs, and hybrid REITs. Equity REITs invest in income-producing properties, and have a hand in building and renovating such properties.
Mortgage REITs get income from the repayment of mortgage loans, and they can acquire interest in mortgages on the market or finance the mortgages from the beginning.
Hybrid REITs are a blend of equity and mortgage REITs. Equity REITs are the most popular of these options, partially because mortgage REITs tend to be riskier.
REITs are mostly sought after for their high dividend yield, which results from regulations which stipulate that REITs must distribute 90% of their revenue to shareholders each year, and investors can choose to reinvest their distributions back into the REIT.
REITs are generally publicly traded and offer investors an opportunity to invest across real estate types with relatively low initial investments.
What is a short squeeze?
A short squeeze occurs when many short-sellers attempt to cover their positions at the same time, and it drives prices up
What is a Stock?
Buying a stock means taking an ownership position in a publicly traded company. Once you purchase a stock, you...
What are Common Questions about Stocks?
People tend to focus on the mystery of the ‘get-rich-quick’ stock market when they start asking questions about...
What is Dividend Yield?
A dividend yield is a ratio that represents how much a company pays in annual dividends relative to its share price
What is a Bank Draft?
The truest definition of a Bank Draft is a check written with the certification of a customer’s bank
What is Total Return?
Total Return is the measure of all appreciation & interest as well as dividends & other distributions from an investment
What is the Housing and Economic Recovery Act (HERA)?
The Housing and Economic Recovery Act did several things, all aiming to help American consumers and lending institutions
What is a No-Cost Mortgage?
No-Cost Mortgages waive the initial closing costs by making a repayment structure for those costs into the interest rates
What is the Three Falling Peaks (Bearish) Pattern?
The Three Falling Peaks pattern forms when three minor Highs arrange along a downward-sloping trend line
What is the Herrick Payoff Index in Trading
The Herrick Payoff Index is one of the only indicators to combine price, volume, and open interest data for analysis