Review DPP structure, types, investor considerations, and suitability and regulatory rules tested on the Series 7.
Direct participation programs test product structure, tax orientation, illiquidity, cash-flow expectations, and strict suitability judgment. This chapter moves from DPP basics into product types, investor considerations, and the sales-practice rules that govern recommendations.
That order matches the way Series 7 questions are usually framed. First identify what a DPP is, then compare the main program types, evaluate investor fit, and finally apply the regulatory limitations that make unsuitable recommendations risky.