Talk:Royalty trust

From Wikipedia, the free encyclopedia

At over 10% return what ar ethe risks related to Royalty Trusts?

If the price of the commodity drops suddenly (the price of oil, for example), both the share price and the dividend payout may drop. Another risk is that the supply will run out. The Canadian trusts are allowed by their legal setup to be run like businesses and acquire new production zones; the US trusts are essentially frozen in place, and just keep pumping oil until it runs out. It's important to read the fine print on their filings with the SEC to see what their reserves are. Hope this helps, Antandrus (talk) 01:19, 13 February 2008 (UTC)