2007-09-15

REIT (6)

What is the difference between REITs and property stock/company? (2)

Property stock/company


Property stocks are shares of companies (property companies) which deal in real estate or property-related business.

A property company is managed like any other company.

A property company owns real estates and is not restricted to carrying on a business in property investment and property development.

The board of directors, on behalf of the shareholders, will monitor a property company to ensure that its assets are protected and that the company is properly run.

An investor of a property stock is not subjected to management or trustee fees.

A property company is not subject to such requirements.

A property company is subject to corporate tax.

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