Series 7 Exam Question 200: Answer and Explanation

Question: 200

Which of the following securities is traded on an exchange and is an entity that makes mortgage loans to developers and has a portfolio of properties?

• A. DPPs
• B. ETNs
• C. Hybrid REITs
• D. Mutual funds

Correct Answer: C

Explanation:

C. Hybrid REITs (Real Estate Investment Trusts) trade on an exchange, provide mortgage loans to developers, and hold a portfolio of securities. Hybrid REITs are a combination of equity (ownership) and mortgage REITs.