4 Ways To Tell If You're Investing in A Partnership Rather Than Stock
Here's a good question we recently received from one of your investment clubs:

"What's the best clue that something is a MLP or a LP as
opposed to a stock? Is there a site that provides their
structure? We don't need any tax hassles or an unhappy

It's a great question. Partnerships trade with tickers like stocks so if you're not careful, it's easy to buy one without knowing what you've gotten yourself into.

Here's are four steps you can take to make sure you won't have a problem with a new purchase:

1. There is a link on our help page to a page callled "Before you Invest". It has a link on it that lists all the publicly traded partnerships.

2. You will find Partnerships often have LP or LLP or LLC in their names.

3. If you go to the investor relations page for a company, you will also find that Partnerships have information about units rather than shares and there are frequently links to K-1 information. Partnerships issue K-1's. Stocks issue 1099's if they pay dividends. Accounting for the K-1 information is the thing that you don't have the tools to handle in your investment club accounting.

4. Finally, you can always feel free to send us a ticker at if you'd like us to check for you before you purchase something. Once you purchase it, you have the problems to deal with.

Laurie Frederiksen
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