In determining whether an investment contract is a security under the provisions of the Securities Act of
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Question:
In determining whether an investment contract is a security under the provisions of the Securities Act of 1933, the standard applied by the court will be:
- Is the investment contract speculative or nonpercolative.
- Whether the issuer had assets of more than 3 million dollars and was offering the investment contract to more than 25 investors
- Whether there was an investment of money in a common enterprise with profits to come solely from the efforts of others.
- Whether the investment contract created expectation of returns higher than the prime rate.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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