Series 65 - Chapter 5

One of thw ways that investing in a real estate limited partnership (RELP) differs from investing in a REIT is that A. the DPP pays dividends, while the REIT does not B. the REIT passes through at least 90& of it's taxable income, while the DPP retains the income C. the DPP is a pass-through vehicle for both income and loss, while the REIT does not pass through losses D. DPPs generally have greater liquidity than REITs

??? C. the DPP is a pass-through vehicle for both income and loss, while the REIT does not pass through losses ???

All of the following are characteristics associated with equity-linked notes (ELNs) except A. they are equity securities B. they are considered an alternative pooled investment C. they have final payments at maturity linked to the return of an underlying stock or basket of stocks D. they are considered to be nonconventional structured investments

A. they are equity securities?

Inverse ETFS are least suitable for investors: A. with a long time horizon B. who are bearish on the market's future. C. wishing to take higher than normal risk. D. who follow an active investment strategy.

A. with a long time horizon?

A direct Participation program is a form of business entity. It may purchase real estate, drill for oil ot gass, or engage in a number of other business activities. Which of the following statements is true? A. Management of the enterprise is generally in the hands of a committee formed by the largest investors B. Management of the enterprise is always in the hands of the general partner(s) C. Management of the enterprise is under the control of a committee consisting of limited and general partners D. Limited partners may not participate in management affairs until at least one year has passed since the offering is complete.

B. Management of the enterprise is always in the hands of the general partner.

In A direct participation program, liability for the debts of the business falls upon the...

General Partner(s)