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Intermediate1.5 hours10 terms

Real Estate Flotation: Key Investment Terms

This curated collection offers key terms that might be helpful when exploring the concept of 'flotation' in real estate investment, particularly concerning public market access. It's designed as a quick reference for commonly referenced concepts you may encounter in this specialized area.

Term Collection

1

Securities and Exchange Commission

The Securities and Exchange Commission (SEC) is an independent agency of the U.S. federal government responsible for protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation. It regulates publicly traded securities, including those related to real estate.

Advanced5 min
2

Market Capitalization

Market capitalization, or market cap, is the total value of a company's outstanding shares, calculated by multiplying the current share price by the number of shares issued. It represents the market's perception of a company's total worth.

Intermediate3 min
3

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It's a key metric for income-focused investors to understand the return on their investment from dividends.

Beginner2-3 min
4

Net Asset Value

Net Asset Value (NAV) represents the total value of an entity's assets minus its liabilities, providing a per-share or per-unit value for investors in funds or syndications.

Intermediate5 min
5

Underwriting

Underwriting is the process by which lenders assess the risk of lending money for a real estate transaction, evaluating the borrower's creditworthiness and capacity to repay, as well as the property's value and marketability.

Intermediate15-18 min
6

Equity REIT

An Equity REIT (Real Estate Investment Trust) is a company that owns and operates income-producing real estate, allowing individual investors to invest in large-scale property portfolios without direct ownership or management.

Beginner5-6 min
7

Funds From Operations

Funds From Operations (FFO) is a key financial metric used primarily by Real Estate Investment Trusts (REITs) to define the cash flow from their operations, providing a more accurate picture of their profitability than traditional net income.

Intermediate5 min
8

Real Estate Investment Trust

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate, allowing individuals to invest in large-scale property portfolios through publicly traded shares.

Intermediate15-18 min
9

Prospectus

A formal legal document required for certain investment offerings, providing comprehensive details about the investment, its risks, and the issuing entity to help potential investors make informed decisions.

Intermediate5 min
10

Initial Public Offering

An Initial Public Offering (IPO) is the process by which a private company first offers its shares to the public, allowing individual and institutional investors to purchase ownership stakes. This transition from private to public ownership enables companies to raise significant capital for growth and expansion.

Intermediate5 min

Common Questions