Which of the following characteristics are applicable to real estate investment trusts (REITs)?
A) REITs have guaranteed minimum dividends.
B) Any losses from the real estate portfolio flow through to the REIT shareholders.
C) REIT shares cannot be bought or sold in the secondary market and are, therefore, considered illiquid.
D) Dividends from REITS are taxed as ordinary income.
Answer: D) Dividends from REITS are taxed as ordinary income.