Investment Contract
/ɪnˈvɛstmənt ˈkɒntrækt/
Definitions
- (n.) A legal agreement involving the pooling of money or assets in a common enterprise with an expectation of profits primarily from the efforts of others.
The court ruled that the scheme constituted an investment contract under federal securities laws.
Forms
- investment contract
- investment contracts
Related terms
See also
Commentary
Investment contracts are a key concept in securities regulation, often analyzed under the Howey Test to determine whether a financial arrangement qualifies as such.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.