Posted By:
Jon CanfieldI'm only a law student but it seems to me that under a Howey analysis, card target would be considered offering a security and must register with the SEC. In short, a Howey analysis states that something is a security if:
1. there is an investment of money
2. in a common enterprise
3. with the expectation of profits
4. derived solely from the efforts of others
In the actual Howey case, for example, fractual ownership of an orange grove was found to be a security and as such, needed to register with the SEC before being legal...
Edited to add that I believe the minimum number of investors needed is either 9 or 15.