SIE Understanding Products and Their Risks Practice Question 61

Correct Answer: D

Explanation:

D: Choice D is correct because another buyer may be found, even though DPPs are not traded on national exchanges. Choice A is incorrect because selling DPP products is not like selling a stock on a registered exchange, and DPP products are sometimes quite illiquid. Choice B is incorrect because the issuer of a DPP generally does not redeem the ownership units during the time frame of the undertaking, which could be lengthy. Choice C is incorrect because ownership units of DPPs are not traded on national exchanges, and some DPPs may not be traded on over-the-counter markets.