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.