REITs
Companies that own or finance income-producing real estate and pass income to shareholders; to avoid corporate tax a REIT must distribute at least 90% of its taxable income, which is why REIT dividends are taxed as ordinary income.
REITs are NOT investment companies and do not pass through losses (unlike DPPs). Non-traded REITs sacrifice liquidity and carry high fees — a suitability red flag the exam can probe.