The Supreme Court in the SEC v.Edwards case held that an investment scheme promising a fixed rate of return can be an "investment contract" and thus a "security" subject to the federal securities laws.

Question

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The statement accurately reflects the holding of the Supreme Court in the SEC v. Edwards case. The court found that the investment scheme in question met the criteria for an "investment contract" under the Howey test, which defines a security as an investment in a common enterprise with the expectation of profit from the efforts of others.

The Supreme Court in the SEC V