Eve is a promoter and has approached Adam with an investment opportunity.Eve anticipates a generous profit and informs Adam that he too can realize a generous profit also.This opportunity is not being offered to others.Assuming all other requirements to classify this as a security are in evidence,the commonality of this transaction would be described as a:

Question

Quizplus · Accepted Answer

Vertical commonality involves a common relationship between the issuer and the investor, such as a promoter offering an investment opportunity to an individual. Horizontal commonality relates to a common relationship between multiple investors, and parallel commonality refers to a common relationship between multiple issuers offering similar investments. Common commonality is not a recognized term in securities regulation.

Eve Is a Promoter and Has Approached Adam with an Investment