Co-produced with R. Paul Drake
The investment website zacks.com has a page entitled “REITs vs. Stocks”, written as though these are two distinct and different types of security. Yet when one looks on a stock screener, one sees the investments one can purchase in REITs labeled as common stock. What gives?
This article, aimed at novice REIT investors, explores the differences between the business structures of REITs and of the ordinary corporations whose stocks one can buy.
REITs come in two flavors. Much more numerous are equity REITs, or eREITs. These are often today just