Types of DPP Offerings
Chapters in this video
- 0:00 Why DPPs carry high risk and illiquidity
- 0:24 Private placements versus public offerings side by side
- 1:07 The PPM versus prospectus exam trap
- 2:52 Accredited investor net worth and income thresholds
- 3:58 Why the typical DPP is private, not public
- 4:22 Even public DPPs lack active secondary markets
- 5:06 Rapid-fire exam recap
What this video covers
- Why most DPPs are sold as exempt private placements under Regulation D (Reg D), not as public offerings
- The private placement memorandum (PPM) versus prospectus distinction, and why the Series 7 swaps these documents in wrong answers
- The accredited investor net worth threshold of $1 million (excluding primary residence) and why home equity does not count
- The accredited investor income thresholds of $200,000 individual or $300,000 joint for the past two years
- Why even public DPP offerings have limited liquidity compared to exchange-traded securities, and the restricted-securities resale holding periods that apply to private placements
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