The term "security" is defined broadly to include a wide array of investments, such as stocks, bonds, notes, debentures, limited partnership interests, oil and gas interests, and investment contracts.
See Also
Loans Are Not Securities: Widely Accepted Premise Underpinning Syndicated Loan Market ReconfirmedGenerally, if an investment of money is made in a business with the expectation of a profit to come through the efforts of someone other than the investor, it is considered a security.
What isnota security?
- Currency
- A check (whether or not certified), draft, bill of exchange, or bank letter of credit
- A note or other evidence of indebtedness issued in a mercantile or consumer, rather than an investment, transaction
- An interest in a deposit account with a bank or a savings and loan association
- An insurance or endowment policy or annuity contract under which an insurance company promises to pay money either in a lump sum or periodically for life or for some other specified period
Note: Tennessee Securities Act of 1980, Tennessee Code Annotated Section 48-1-101, et seq.
Common characteristics ofunregisteredsecurities:
- They are represented as safe investments.
- They are represented as no risk investments.
- They are represented as guaranteed return investments.
- They offer returns on investment that are greater than the prevailing market.
- The sales commissions paid to sales agents are much higher than for traditional products.
See Also
15 U.S. Code § 77b - Definitions; promotion of efficiency, competition, and capital formationGary Gensler Crypto Perspective: Why Bitcoin is Not a Security, but Refuses to Say It’s a Commodity? - Anndy LianCommodity vs. Security: What's the Difference?What are Government Bonds: Working, Types, Pros and Cons