Investment Contracts
/ɪnˈvɛstmənt ˈkɒntrækts/
Definitions
- (n.) Agreements involving an investment of money in a common enterprise with an expectation of profits primarily from others' efforts, often regulated as securities.
The Supreme Court ruled that the sale of certain notes constituted investment contracts under federal securities law.
Forms
- investment contract
Related terms
See also
Commentary
The term 'investment contracts' is key in securities regulation and is often defined by the Howey Test, which determines whether a transaction qualifies as such a contract under U.S. securities law.
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.