
Publicly traded partnerships
Publicly traded partnerships (PTPs) are business entities that operate similarly to partnerships but are traded on stock exchanges like stocks. They often own and manage assets such as infrastructure or energy projects, generating income for investors. PTPs typically pass their income directly to investors, who report it on their tax returns, benefiting from tax advantages. They are attractive to investors seeking regular income and can provide diversification, but they also involve risks related to the specific industry and market fluctuations. Overall, PTPs offer an alternative investment option with unique tax and income characteristics.