Hal Lindon Has an Equity Investment in a Pool of Student

question 109

Multiple Choice

Hal Lindon has an equity investment in a pool of student loans that have been purchased by Sallie Mae.What type of investment is this?

• A)Limited partnership
• B)Direct
• C)Mortgage REIT
• D)Hybrid REIT
• E)Participation certificate

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Definitions:

Actual Fraud

Refers to intentional deception made for personal gain or to damage another individual.

Material Fact

An important fact that if known might influence a decision maker’s decision, such as in a contract negotiation or in the dissemination of information to investors.

Mislead

To cause someone to have a wrong idea or impression about someone or something.

Ultramares Rule

A doctrine limiting the liability of auditors to third parties for negligence, except in cases of fraud or misrepresentation.