Which statement is false regarding trusts set up for the purpose of holding commercial property or mortgages?

The statement that investors may never purchase shares in trusts set up for holding commercial property or mortgages is false. In reality, many trusts, such as Real Estate Investment Trusts (REITs), are publicly traded and allow investors to buy shares on exchanges or over-the-counter markets. This trading mechanism provides liquidity to investors and makes it easier for them to invest in real estate without necessitating direct ownership of the properties.

The other statements are accurate. Trusts can indeed be structured as open-end or closed-end funds, which defines how they manage investments and distribute shares. Gains can flow through to shareholders, meaning that individuals can realize returns from property appreciation or rental income. Additionally, ownership of shares in such trusts often provides for dividends, as these entities typically distribute a large portion of their income back to shareholders.