Question

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is ________.

Answer 1

Answer:

Real Property

Explanation:

Capital markets refer to the market which trades in long term securities whose maturity is more than an year.  The instruments traded in capital markets are usually stocks and bonds.

In private equity real estate, public and private investments are pooled together and invested in the real estate property markets. So here the underlying asset whose price fluctuates is property. If property prices soar, the investors stand to gain.

This kind of investment involves high risk but is also capable of generating a higher return as greater the risk involved, greater the return.