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Marge Wishes to Raise Some Money to Begin Mass Producing

Question 80

Multiple Choice

Marge wishes to raise some money to begin mass producing her prize-winning jellies and jams. She offers her neighbors a portion of her profits if they will put up $2,000 each towards her endeavor. Is their investment a "security"?


A) Yes, since Marge will do all the work.
B) Yes, because her neighbors will have a security interest in the jelly.
C) No, since the neighbors are putting no effort into it.
D) No, because Marge is not issuing stock certificates.

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