About This Chapter
Direct Participation Programs - Chapter Summary
This chapter begins with the fundamentals of DPPs: their structures, risks, and advantages. Once you've mastered the basics, you'll move on to the tax treatment of DPPs and the associated implications. By the end of the chapter you will be able to:
- Describe various DPPs, including limited partnerships and limited liability companies
- Analyze the tax liability of DPPs
- Detail metrics used in the evaluation of DPPs
This chapter brings together concise definitions and illustrative examples to help you retain what you study. Since the chapter is self-paced, you determine how little or how much time you need to spend on each lesson. Use your dashboard to see how much you've mastered and what you still need to work on.
1. Direct Participation Programs (DPPs): Types, Risks & Advantages
Direct participation programs are companies where small investors can make direct investments in different businesses. They are unregulated and can be high risk, but allow investors direct participation in the rewards of the business.
2. Structures of Direct Participation Programs (DPPs)
This lesson deals with different structures and characteristics of direct participation programs (DPPs). Learn about the roles and duties of general partners and limited partners and tax pass-through exemption.
3. Direct Participation Programs (DPPs): Tax Treatment & Implications
This lesson deals with the tax implications and tax treatment of DPPs. Learn tax benefits of DPPs such as pass-through, the non-taxable return of capital and depletion benefits.
4. Types of Direct Participation Program (DPP) Offerings
In this lesson, you'll learn about direct participation programs and their different types of offerings as well as the regulatory rules that govern them.
5. Evaluating Direct Participation Programs (DPPs)
This lesson deals with the evaluation of direct participation programs. Learn to evaluate direct participation programs on the basis of economic soundness, profitability, expertise, objectives, costs, and other factors.
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Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- New Issue Regulations in the Securities Industry
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Handling Customer Investment Information & Discretionary Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Packaged Investment Products
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Municipal Securities Analysis & Regulations
- Registered Hedge Funds
- Asset-Backed Securities
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Transactional Delivery Obligations & Settlement Procedures
- Investment Disputes & Customer Complaints
- Addressing Margin Issues