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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

REIT

Definition:

Real Estate Investment Trust: It's kind of a mutual fund for real estate investments.

This security invests in mortgages or real estate and can be traded on exchanges like a stock. If you like the idea of investing in real estate but don't like the idea of sinking your money into a house, this option gives you some tax breaks but is easier to convert into cash than a house would be.