© 2015 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Investment Contract


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.