Which of the following is a form of housing in which shareholders purchase stock to obtain the right to live in a unit of the building?
Understand the Problem
The question is asking which type of housing allows shareholders to purchase stock for the right to live in a unit. This involves understanding different housing types and their ownership structures.
Answer
Cooperative housing.
The form of housing in which shareholders purchase stock to obtain the right to live in a unit of the building is cooperative housing.
Answer for screen readers
The form of housing in which shareholders purchase stock to obtain the right to live in a unit of the building is cooperative housing.
More Information
In cooperative housing, residents buy shares in a corporation, which gives them the right to occupy a unit in the building, rather than owning the unit outright.
Tips
A common mistake is confusing cooperative housing with condos. In a condo, individuals own their units, not shares in a corporation.
Sources
- What Is A Co-Op And How Do They Work? - Rocket Mortgage - rocketmortgage.com
- Housing cooperative - Wikipedia - en.wikipedia.org
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