What aspect of the real estate market is a Real Estate Investment Trust designed to support?

A Real Estate Investment Trust (REIT) is specifically designed to facilitate real estate investments by multiple investors. This structure allows individual investors to pool their resources to invest in real estate assets, which they may not be able to afford or manage on their own. By investing in a REIT, individuals can gain exposure to a diversified portfolio of real estate properties while benefiting from professional management and the potential for income through dividends.

REITs also provide liquidity to real estate investments, as they are typically publicly traded like stocks, making it easier for investors to buy and sell shares. This collaborative investment strategy enhances accessibility to the real estate market and supports the financing and management of real estate properties on behalf of the collective investors.

Understanding this role of REITs is crucial for grasping how collective investment mechanisms can impact the broader real estate market and provide benefits to individual investors.