John B. Corgel, Ph.D., and Scott Gibson, Ph.D. in Nontraded REITs: Considerations for Hotel Investors examine the operation of nontraded REITS. Nontraded REITS are registered with the SEC, but are not traded on stock exchanges. They are typically sold through financial planners. The market value of nontraded REITS is almost equal to that of publicly traded REITS. The major finding of the study is that the fixed share price feature of nontraded REITS diminishes returns to early investors ever after considering dividends.
Tuesday, November 25, 2008
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