SIE Key Concepts Ch. 5

Other Managed Products (REITs, DPPs/LPs, Hedge Funds)

Depletion

tax deduction that compensates a limited partnership as they use up a natural resource such as oil or gas (NOT real estate)

direct participation programs

pass through gains and losses to investors (no corporate taxation); passive losses offset passive gains

interest in a limited partnership

equity ownership

S corp

type of DPP

prime brokerage accounts

suite of bundled services offered to hedge funds and other large institutional investors by banks and wealth management firms

structured products

securities created by broker dealers that provide a return based on market performance and often limit downside exposure

ETN (exchange traded note)

structured products issued by broker dealers, credit quality is based on the issuing broker dealer