A fractional undivided interest in oil, gas, or other mineral rights may be considered a "security" under federal law.

Question

Quizplus · Accepted Answer

Fractional undivided interests in oil, gas, or other mineral rights may be considered securities under the Securities Act of 1933 if they meet certain criteria, such as being offered and sold to investors with an expectation of profit from the efforts of others. This determination would be made on a case-by-case basis depending on the specific facts and circumstances.

A Fractional Undivided Interest in Oil, Gas, or Other Mineral