investment contract

investment contract

“Any contract, transaction or scheme whereby a person invests money in a common enterprise and is led to expect profits solely from the efforts of the promoter or third party,” is the definition used by the Securities and Exchange Commission (SEC).Investment contracts related to real estate come within the definition.Nationwide litigation is currently under way to say that purchases of units in hotel condominiums—condotels—are also investment contracts.If something qualifies,it is possibly subject to registration,reporting,and disclosure requirements imposed by the SEC.

References in periodicals archive ?
EDF Group and the UK Government have reached in principle an agreement on the key commercial terms for an investment contract of the planned Hinkley Point C nuclear power station.
Auto Business News-October 25, 2011--Saab withdraws USD340m investment contract with Chinese company(C)1994-2011 ENPublishing - http://www.
ULAANBAATAR, Mongolia, July 10 /PRNewswire-FirstCall/ -- John Macken, President and CEO of Ivanhoe Mines, said today the company expects to resume final negotiations with the Mongolian Government after the current Naadam summer festival holiday to conclude a formal Investment Contract that will confirm a tax and infrastructure framework for the development of the Oyu Tolgoi copper-gold mine in Mongolia's South Gobi Region.
Guaranteed Investment Contract (GIG): Investment contract offered by life insurers, usually to institutional investors, that guarantees a fixed interest payment and repayment of principal and interest on the funds deposited with the insurer for a specific period of time.
AICPA Statement of Position 94-4, Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution Pension Plans, indicates that a fully benefit-responsive investment contract should be reported at contract value and provides an example of a fully benefit-responsive synthetic GIC as an investment contract that is subject to SOP 94-4.
Supreme Court held that the definition of a security includes an investment contract, which is "a contract, transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or third party.
that she had purchased real property when in fact she had actually purchased investment contract securities,'' the lawsuit said.
Company officials say their troubles began in 1984 when they attempted to boost their cas flow by purchasing a guaranty investment contract with a maturity level of $4.
A long-term investment contract will be soon inked by Government for purchasing electricity for up to 40 years at twice today s price.
Under the Eleventh Circuit's decision, the seller of a fixed rate investment contract isn't required to be trained, supervised or even licensed.
But how could the largest trust company in Missouri take a small company's profit-sharing plan, put it in a single guaranteed investment contract from Executive Life, a company that was heavily invested in junk bonds, and wipe out the savings of people who had worked for Allied for years?
A consortium representing Cogas and Monai Gas of Kazakhistan has won the investment contract for Akkaz Gas Field, a promising gas field, close to Iraq's borders with Syria, after presenting a price of 5.

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