Posted By:
Mike MasinickSTATUTORY DEFINITION OF “SECURITY”
• The Securities Act of 1933 (the “Securities
Act”) and the Securities Exchange Act of 1934
(the “Exchange Act”), the two principal Federal
statutes in the area, contain definitions of the
term “security” that, although not identical, are
interpreted as “virtually identical.” Landreth
Timber Co. v. Landreth, 471 U.S. 681 (1985). In addition
to a laundry list of items, including,
among other things, “notes,” “stocks,” “bonds,”
“debentures,” and the like, both statutes provide
that an “investment contract” constitutes a
“security.” Moreover, both statutes provide that
their statutory definitions of the term security
apply “unless the context otherwise requires.”
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I don't think it's reasonable to argue that we are providing an "investment contract". The only issue I see is the phrase "unless the context otherwise requires". Point has been taken regarding how the website is written up, and I will make some modification soon to clarify things.