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"?

Question

Quizplus · Accepted Answer

The investment is considered a "security" because it involves an investment of money in a common enterprise with the expectation of profits derived primarily from the efforts of others, which is the definition of a security under the Howey Test.

Marge Wishes to Raise Some Money to Begin Mass Producing