n NISM Certifications
X NISM Series X
Medium

What does a REIT unit represent for investors?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Entitlement to economic benefits from underlying real estate

    Correct answer

  2. B

    Equal rights in real estate properties

  3. C

    Proportionate ownership in properties

  4. D

    Direct ownership of real estate properties

Why this is the answer

A REIT unit confers a right to income and capital appreciation derived from the trust’s real estate holdings, not direct ownership.

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