Royalty trust

Hey kiddo, have you heard of royalty trusts? No? Let me explain it to you in a way you can understand.

Imagine there's a playground with lots of swings, slides, and other fun things. Let's say a company owns this playground and charges kids money to play on it. The more kids play on the playground, the more money the company makes.

Now, let's pretend that instead of a playground, it's an oil field. The company that owns the oil field can make money by selling the oil that's under the ground. But, they need help finding and extracting the oil from the ground, and that can be expensive.

This is where a royalty trust comes in. A royalty trust is kind of like a special club where people can pool their money together to help the oil company find and extract the oil from the ground. In return, the people in the club get a share of the profits from the sale of the oil.

So, let's say you and some other people join the royalty trust club and pool your money together to help the oil company. If the oil company finds and sells a lot of oil, the club gets a big share of the profits. But if the oil company doesn't find much oil, the club won't make much money.

Overall, a royalty trust is a way for people to invest in oil fields and other natural resources, sort of like buying a share in a company. But instead of owning a piece of the company, they own a share of the profits from the sale of the natural resources.