Series 7 practice questionmediumDirect Participation Programs 446
A direct participation program investor is typically considered a:
- Asecured creditor of the program sponsor
- Bgeneral partner with unlimited authority
- Cregistered investment company shareholder
- Dlimited partner for liability purposes✓ Correct answer
Explanation
Why D — limited partner for liability purposes
Most DPP investors participate as limited partners. They generally have limited liability but do not control day-to-day management.
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