What is 5/50 rule?
A REIT ownership requirement: five or fewer individuals cannot own more than 50% of the value of the REIT’s shares during the last half of the taxable year.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.