John operates a sailboat charter service in the United States Virgin Islands.He currently has a fleet of ten boats and would like to have a larger fleet,but he would have to obtain additional investors in order to do so,which he opposes.John is considering having investors buy sailboats,which he would maintain and operate as part of his charter fleet.He would enter into a contract that would sell the boat to an investor,obligate the investor to pay John a monthly fee for the maintenance of the boat,and share profits between John and the investor.Discuss whether this investment is a security under the Securities Act of 1933.

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The Answer of John operates a sailboat charter service in the United States Virgin Islands.He currently has a fleet of ten boats and would like to have a larger fleet,but he would have to obtain additional investors in order to do so,which he opposes.John is considering having investors buy sailboats,which he would maintain and operate as part of his charter fleet.He would enter into a contract that would sell the boat to an investor,obligate the investor to pay John a monthly fee for the maintenance of the boat,and share profits between John and the investor.Discuss whether this investment is a security under the Securities Act of 1933.

John Operates a Sailboat Charter Service in the United States