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Industry Discussions / Real Estate Inv. Trusts: REITs

URL:  http://boards.fool.com/quotthe-provision-of-the-reit-act-that-requires-30565832.aspx

Subject:  Re: CWH Earnings and much more.. Date:  2/27/2013  10:24 PM
Author:  Valuemongeragain Number:  73771 of 77093

"The provision of the REIT Act that requires that 5 or fewer shareholders cannot hold, directly or indirectly, a majority of company stock....only applies to the latter half of a given year. I've always wondered why it was written this way,"

The five shareholders not owning more than 50% is the IRS definition of a closely held company and effects not only REIT status, but can effect non-REITs as well.
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