Which of the following was the result at the U.S.Supreme Court level in SEC v.Edwards,the case in the text involving sales of interests in pay telephones and the issue of whether a moneymaking scheme falls outside the definition of an investment contract because the promised rate of return is fixed rather than variable?

Question

Quizplus · Accepted Answer

The result at the U.S. Supreme Court level in SEC v. Edwards was that entitlement to a fixed rate of return did not prevent the arrangement from being an investment contract. The court held that the sale of interests in pay telephones constituted an investment contract under the Securities Act of 1933 because investors were led to expect profits solely from the efforts of the promoter or a third party, including the sharing of revenues, and their profits were not dependent on their entrepreneurial or managerial ability. The fact that the promised rate of return was fixed did not prevent the arrangement from being an investment contract.

Which of the Following Was the Result at the U