Question

Jefferson davis has invested in something that acts like a mutual fund and that invests in hospitals all over the country. he knows there are federal laws that require this type of investment to distribute at least 90 percent of the income to shareholders and that requires there be at least 100 shareholders. what type of investment has jefferson made?

Answer 1

Answer:

REITs

Explanation:

Based on the scenario being described it can be said that the type of investment that Jefferson has made is known as a REIT. This term stands for Real Estate Investment Trusts, and are companies that own or finance income-producing real estate across a range of property sectors, such as hospitals, hotels, apartment buildings etc. This investment trade on major stock exchanges and the companies must meet certain requirements to qualify as a REIT such as needing to distribute at least 90 percent of the income to shareholders and that requires there be at least 100 shareholders.