SIE Exam Question 254: Answer and Explanation

Question: 254

Recommending a limited partnership DPP investment to a customer would be a defendable recommendation for a client:

• A. seeking flow-through tax benefits
• B. who is not risk averse
• C. who does not have an immediate need for liquidity
• D. any of the above

Correct Answer: D

Explanation:

D: Investors seeking 'tax shelter' or 'tax advantage' are often suitable for the flow through benefits of DPPs (direct participation program--- limited partnerships).