Primary Market
Which characteristic distinguishes publicly traded REITs from non-traded REITs?
Listed REITs = liquid (exchange-traded). Non-traded REITs = illiquid, harder to sell.
Complete Analysis & Legal Rationale
Publicly traded (listed) REITs trade on stock exchanges, providing investors with liquidity and the ability to buy or sell shares readily. Non-traded REITs lack this liquidity and may have limited redemption options.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Both types have similar dividend tax treatment.
Matches the verified teaching point in the explanation.
Both traded and non-traded REITs must distribute 90% of taxable income.
Both types invest in real estate assets.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.