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 ?
SEC (546 SCRA 567 [2008]), the Supreme Court recognized there were two tests in determining whether a contract was an investment contract.
Auto Business News-December 15, 2017--Hanon Systems signs investment contract with Dalian municipal government in China
According to Assistant Special Prosecutor III Anna Isabel Aurellano who filed the charges, Ocampos was accused manifest partiality or, at least, gross inexcusable negligence, when he criminally gave unwarranted benefits to Akhavan in entering into an investment contract for a build-operate-transfer (BOT) agreement in the construction, operation and maintenance of the MOAP from 2004 to 2009.
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.
Plans often specify a money market account or a guaranteed investment contract (GIC) as the plan's default account for participants who do not direct their accounts' investment.
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.
An investment contract is defined as a transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.
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.

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