A real estate investment trust (REIT) allows investors to:

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A real estate investment trust (REIT) is designed to pool the resources of multiple investors, allowing them to collectively participate in owning and managing large-scale real estate assets. This pooling mechanism enables investors to access investment opportunities that would be beyond the reach of individual investors acting alone, as commercial real estate typically requires significant capital. By investing in a REIT, individuals can gain diversified exposure to various income-generating properties, such as apartment complexes, office buildings, shopping centers, and more, which helps to mitigate risks associated with real estate investments.

This structure not only facilitates larger investments than an individual might undertake but also provides liquidity, as shares of publicly-traded REITs can often be bought and sold on major stock exchanges. Thus, the focus on pooling resources for larger investments is a fundamental aspect of how REITs operate, making it the correct answer in this scenario.

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