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Finance Glossary

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Investment Contract

Definition:

Another term for a 'security' as defined in the Uniform Securities Act and the Federal Securities Act of 1933. The Howey Decision defines an investment contract as "an investment of money in a common enterprise whereby the investor's fortunes are entwined with other investors and/or the promoter, and the investor hopes to benefit solely through the efforts of others." Sounds good to us.

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