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Glossary entry · What you own
REIT
Definition
Real Estate Investment Trust. A company that owns and operates income-producing real estate (office buildings, apartments, malls, hotels, data centers) and trades on a stock exchange like a stock. By law, REITs must distribute most of their income as dividends, so they tend to have high dividend yields.
Example
A US REIT might own thousands of apartments across the country and pay a 4-6% dividend yield.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
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