Answered

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What will a court ask to determine whether something is a security?

A. Is the investment a common business activity?
B. Is the investment based on a reasonable expectation of profit?
C. Will profits be earned through the efforts of someone other than the investor?
D. All of the above

Sagot :

GinnyAnswer

Final answer:

Courts determine if something is a security by asking specific questions related to the investment's characteristics.


Explanation:

All of the above are questions a court may ask to determine whether something is a security:

  1. Is the investment a common business activity?
  2. Is the investment based on a reasonable expectation of profit?
  3. Will profits be earned through the efforts of someone other than the investor?

These questions help in evaluating whether an investment qualifies as a security based on the Howey Test.


Learn more about investment securities here:

https://brainly.com/question/44361558


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