Is the Investment a Security Flashcards
Are Stocks (including treasury stock) considered a security?
Yes
Is the Instrument/Investment a Security? Notes, bonds, and debentures.
Yes
Is the Instrument/Investment a Security? Rights and warrants
Yes
Is the Instrument/Investment a Security? Investment Contracts
Yes
Is the Instrument/Investment a Security? Preorganization certificates
Yes
Is the Instrument/Investment a Security? Certificates of participation in any profit-sharing agreement
Yes
Is the Instrument/Investment a Security? Certificates of participation in an oil, gas, or mining lease.
Yes
Is the Instrument/Investment a Security? Investment company shares
Yes
Is the Instrument/Investment a Security? Limited partnerships
Yes
Is the Instrument/Investment a Security? Variable Annuity and Life Contracts
Yes
Is the Instrument/Investment a Security? Options
Yes
Is the Instrument/Investment a Security? Viatical investments
Yes
Is the Instrument/Investment a Security? Life Insurance
No
Is the Instrument/Investment a Security? Endowment Policies
No
Is the Instrument/Investment a Security? Fixed Annuities
No
Is the Instrument/Investment a Security? Commodities, collectibles, currencies, condominiums as a place of business or residence
No
Refers to the purchase of an interest in an insurance policy covering an individual’s life.
Viaticals.
Viatical investors must either be accredited investors (according to Regulation D) or meet one of the following two
standards:
*Minimum net worth of at least $150,000 (not including their residence) and an annual income of $100,000, or
*Minimum net worth of at least $250,000 (not including their residence)
Viaticals:
*Investments are speculative and highly risky
*Great likelihood of fraud since due to the difficulty of predicting when a person will die
True or False: The effective date is granted by the Administrator and represents the date on which the securities can be sold publicly.
True
A security’s registration expires one year after its effective date.
True
