All of the following regarding a trust set up for the purpose of holding commercial property, or mortgages on commercial property, are true EXCEPT
A) ownership of these shares may provide for the receipt of dividends
B) investors may never purchase shares in these trusts on an exchange or OTC
C) /gains can pass through to the owners of these shares
D)these investments could not be considered open- or closed-end funds
Explanation
This is a REIT. REIT shares can trade on exchanges or over the counter (OTC). Owners of these shares may receive dividend distributions and have capital gains pass through to them for tax purposes as well. REITS, organized as trusts, are not investment companies (open- or closed-end funds). Shares in REITs are equity securities.
Reference: 2.1.6 in the License Exam Manual