StudentShare solutions
Triangle menu

Finance and Market , short question - Essay Example

Nobody downloaded yet

Extract of sample
Finance and Market , short question

For the purpose of this study, we dwell on the advantages and disadvantages of the diversification of REITs holdings’ activities as opposed to the focused approach. Advantages Wider Market Cover When a REIT agency registers to venture into specific areas, there is an aspect of additional market cover. REIT can thus conduct a number of projects which essentially maximize its potential. This in the broader picture implies additional return on investment and maximizes the proportions of dividends that the shareholders gain in the REIT investment. This is not usually the practical case of REITs business that is restricted to specific line of real estate development. If REITs companies have specifications to operate in restricted lines of business, they cannot later on expand to more openings and business opportunities. In a diversified perspective however, REITs have to enjoy a dynamic market characterized by a wide range of business opportunities than maintenance of an ordinary real estate portfolio. Dynamism and Innovations Secondly, diversification have in the past enabled RETs to introduce and practice innovative ideas in the real estate properties without the risks of exceeding the limits of operation as stated in the description of the real estate portfolio. ...
This approach provides opportunities for to enable the REITs to practice real estate swap which the enables upcoming potential real estate investors to get sufficient exposure to real estate property business without necessarily fulfilling the huge amounts of capital commitment. In the swap, REITs enjoy unlimited exposure to real estate and have the ability to change their capital equity and bonds without restrictions or regulations. This means that REITs sources of revenue will then not be limited to interests, but also bonds, equity and commodities. With the inclusion of the international diversification in Real Estate, there is a low correlation with interest rates than with bonds and equities. The scale of International diversification in real estate investment securities exposes REITs to minimal risk compared to the focus on equities and bonds. Disadvantages High Taxation REITs occupy larger portfolios in real estate trading and this attracts more taxes due to the statutory consideration of the return on investment. The wider the portfolio a real estate maintains, the larger the taxation that is applied. This is a great and inevitable challenge which incidentally is not negotiable. Risks of Over-Commitment Secondly, REITS face high risks of over-committing capital equity into long term investments whose returns are not guaranteed. This is a high risk that either leads to the extreme results, either too high losses or extremely high returns. To realize high returns in this case requires REITs to conduct systematic studies of the contemporary market risks. Divergence of focus The third disadvantage that REITs get exposure to in the diversified ...Show more


Finance and Market Name: Instructor: Course: Date: Question 1: Answer: Real Estate Investment Trust can conduct property investment in two different approaches. The first approach is the application of diversification, where the REIT considers a combination of various lines of business under the same business title…
Author : camilareichert
Finance and Market , short essay question essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance and Market , short essay question"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Finance and Accounting Essay: Stock Market Analysis
The FTSE are used by the interested investors, find managers, investment banks stock brokers for the purposes of analyzing investment purposes, performance measurement, asset allocation, portfolio hedging and creation of index tracking funds. There is a constant review and approval by the financial experts.
11 pages (2750 words) Essay
Finance and Accounting Essay: Credit and Market Risk
Criticisms have been against Basel II and its inability to set required standards for banking sectors globally (Lall, 2009). The long drafting process that has been adopted by Basel II has failed in managing risks and has such an inability has led to financial crisis with increased risks (Cornford, 2010).
14 pages (3500 words) Essay
Short term finance sources
This research is being carried out to evaluate and present four most common short term sources of finance that a business uses to finance its expenses and they are: 1) Bank overdraft 2) Short term loans 3) Trade credit 4) Sale of unused assets They can be used to pay for the salaries of the employees and other administrative costs.
6 pages (1500 words) Essay
Finance Short-Answer Essays
External environment usually relates to factors such as inflation, exchange rate risks, political risks and all those factors that are deemed to be outside the control of an individual organisation. Internal review includes factors that are usually within the control of the organisation such as labour, product quality and many more.
8 pages (2000 words) Essay
Business Finance, Computational and mini essay question
Curtain plc has a beta factor of 0.6 and has a correlation coefficient with the market portfolio of 0.27, whilst Blind plc has a beta factor of 1.4 and a correlation coefficient with the market portfolio of 0.21. The correlation coefficient between Curtain plc and Blind plc is 0.32.
2 pages (500 words) Essay
Finance market
A lot many efforts were made towards identifying a predictable trading pattern which could be used for chasing profitable deals. From the mid-1950s to the early 1980s, a random walk theory (RWT) of share prices was developed based on the past empirical evidence of randomness in share price movements.
10 pages (2500 words) Essay
Short question essay
These services include the jobs which the individuals and businesses/companies cannot do on their own and have to hire highly qualified individuals from these firms which have a very deep knowledge of highly technical matters like
4 pages (1000 words) Essay
Short answer in Law question in essay
Intention is legally defined as the willingness of all parties (parties involved in the transaction or agreement) to be legally bound by an agreement. In simpler terms, it is just
5 pages (1250 words) Essay
Finance question
Currently, the Incorporation makes cleats, shorts, jersey, and shoes. In 2014, Nike Inc.’s most exciting product was not their usual clothing products but an application. The application
2 pages (500 words) Essay
Three short essay question
, dharma involves worshipping God, performing one’s duties appropriately, staying honest, not hurting animals or even other humans, and so on (Penney, 1995). Karma, literally meaning ‘action’, in Hinduism, refers to the invisible law that defines how the next life will be.
4 pages (1000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us