unit 17

Question 1

DPP

Answer 1

flow throw of income and expenses

has to have the potential for profit to exist

usually organized as a limited partnership(limited liability)
liability limited to only what invested or what committed

Question 2

benefits of dpp

Answer 2

benefits- passive losses flow through(you can offset passive income with this)
some offer tax credits

Question 3

strucutre of dpp

Answer 3

General partner(unlimited liability, management,)
and limited partner(passive)

and limited partner

Question 4

risks of DPP

Answer 4

limited liquidity or no liquidity

nontransferable without general partners consent

Question 5

ETN

Answer 5

also called equity-linked notes
this is a debt security
return linked to market index or benchmark
credit resk- because this is unsecured debt of issuer

Question 6

real estate investing risks

Answer 6

liquidity
poor management skills
inability to find buyers
high leverage in down market bad

Question 7

3 precious metals

Answer 7

gold silver Platinium

Question 8

benefits of commodities

Answer 8

hedge against inflation
diversificiation
profit

Question 9

risk of commodities

Answer 9

can lose money
volatility
foreign market risk(currency and political)
high spreads
lack of income

Question 10

comparing etfs and ETNS in terms of suitability for income investor with limited assets

Answer 10

etfs are based on debt securities with many issuers

etn is only one issuer(more risky)