Answer: A real estate operating company

## Explanation **Correct Answer: C - A real estate operating company** **Analysis:** - **Real Estate Operating Company (REOC)**: These are publicly traded companies that develop and sell real estate properties as their primary business activity. They focus on property development and sales rather than long-term rental income generation. - **REIT (Real Estate Investment Trust)**: REITs primarily generate income through rental properties and must distribute at least 90% of their taxable income to shareholders. They are focused on owning and operating income-producing real estate, not property development for sale. - **MBS (Mortgage-Backed Security)**: These are securities backed by pools of mortgages, representing debt obligations rather than equity ownership in real estate development companies. **Key Distinction:** - REOCs are development-focused companies that build and sell properties - REITs are income-focused entities that own and operate properties for rental income - MBS are debt instruments related to mortgage financing Since the investor specifically wants exposure to companies that **develop real estate properties for sale**, a real estate operating company is the most appropriate vehicle.

Author: LeetQuiz Editorial Team