What is true regarding the transferability of interests in REITs?

REITs, or Real Estate Investment Trusts, are structured as investment companies that are traded on major exchanges similar to stocks. This means that interests in REITs are indeed transferable; investors can buy and sell shares of a REIT on the open market. This liquidity—where shares can be easily transferred or exchanged—makes REITs an attractive investment option for many individuals seeking exposure to real estate without the challenges of managing physical properties.

The ability to transfer interests in REITs supports the overall appeal of these securities, allowing investors to enter and exit their positions with relative ease compared to other forms of real estate investments that may require significant commitment and time. In contrast, other options present restrictions or incorrect information regarding the nature of REIT interests, which further emphasizes the flexibility provided by the correct understanding of their transferability.