Sản phẩm & Rủi roCâu 106 / 398
Which is a primary risk that a registered representative should disclose about most direct participation programs?
a.They are federally guaranteed against loss
b.Their interests trade actively on a national exchange
c.They provide guaranteed monthly income
d.They are illiquid, with limited or no secondary market for the interests
Giải thích
DPP interests are generally illiquid because there is little or no active secondary market, so investors may be unable to sell readily and should plan to hold for the long term. Combined with their speculative nature and reliance on the general partner, illiquidity makes DPPs suitable only for investors who can bear such risks.
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Câu hỏi liên quan cùng chủ đề
- A key tax feature of a direct participation program (DPP) is that it:
- In a direct participation program organized as a limited partnership, the limited partners:
- Which of the following is a common type of direct participation program?
- Hedge funds are typically sold through private placements and are generally limited to:
- Compared with a registered open-end mutual fund, a hedge fund typically:
- Under the forward pricing rule, an order to buy or redeem open-end mutual fund shares is executed at:
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