Which of the following would ordinarily NOT be considered a security under the federal securities laws?
A) Bonds.
B) Stocks.
C) Investments in limited partnerships.
D) An investment in a nonprofit venture based on one's own entrepreneurial efforts.

Question

Quizplus · Accepted Answer

Under federal securities laws, securities typically include a wide range of investment vehicles such as bonds, stocks, and investments in limited partnerships. However, an investment in a nonprofit venture based on one's own entrepreneurial efforts would not ordinarily be considered a security because it does not involve an investment contract where an individual expects to profit from the efforts of others, which is a key criterion under the Howey Test for defining a security.

Which of the Following Would Ordinarily NOT Be Considered a Security