Equity REITs Are Sometimes Purchased to Hedge Against Inflation, as Rents

question 53

True/False

Equity REITs are sometimes purchased to hedge against inflation, as rents and property values tend to rise with inflation.

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Definitions:

Capital Stock

The total amount of shares that a company is authorized to issue, representing the main source of equity for the company.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividend payments.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a claim on profits in the form of dividends.

Capital Stock

The total amount of a company's capital, represented by the shares of its stock.