Mickie Wenwoods, an outstanding collegiate golfer, graduates from college and decides to turn professional. To finance her effort to qualify for the LPGA Tour and to cover the cost of travel, housing, food, and a caddy, Wenwoods asks 20 of her family friends to contribute $10,000 each to her efforts. In return for their contributions, each friend will receive 1 percent of Wenwoods's revenues from her golfing efforts, including tournament prize money and endorsement fees from sponsors, less Wenwoods's expenses. Whether Wenwoods is able to generate revenue is dependent on how well she plays in golf tournaments and whether she is able to convince sponsors to sign her as an endorser. Wenwoods will also determine the amount of her expenses for travel, food, housing, and a caddy. Is Wenwoods selling a security when she asks for contributions from her friends?
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