Such enterprises may involve anything from cattle breeding programs to movie productions. This is often done through the establishment of a limited partnership in which investors, as limited partners, own an interest in a venture but do not take an active management role. Some of these securities are issued primarily for purposes of reducing income tax liability. Real estate investment trusts are set up in a fashion similar to investment companies. Instead of investing in stocks or bonds, however, REIT investors pool their funds to buy and manage real estate or to finance real estate construction or purchases.
Real estate limited partnerships are also common.
T-bills are sold to selected securities dealers by the Treasury at auctions. Investors can buy all three types, without paying a commission, directly from a Federal Reserve Bank or the Bureau of the Public Debt. Government securities can also be purchased from banks, government securities dealers, and other broker-dealers. All rights reserved.