Variable Annuities
Which of the following can pass through LOSSES to investors?
DPPs can pass through both income AND losses to investors. REITs and mutual funds can only pass through income - they cannot pass through losses to shareholders.
Complete Analysis & Legal Rationale
DPPs can pass through both income AND losses to investors. REITs and mutual funds can only pass through income - they cannot pass through losses to shareholders.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.