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Securities

A security is a fancy way of saying investment contract.  It can be debt or equity.

In 1946, the Supreme Court defined a security as anything that meets these four criteria. 

  1. It is an investment of money
  2. There is an expectation of profits from the investment
  3. The investment of money is in a common enterprise
  4. Any profit comes from the efforts of a promoter or third party

 

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