Unit 1

Question 1

What is an security?

Answer 1

An intangible financial assest that may be bought, sold or gifted between persons. May be a paper certificate or an electronic record.

Question 2

What is a commodity?

Answer 2

An hard asset such as gold, beef, orange juice or oil. There is an active market in a derivative investment in commodities called futures. They are not considered a security.

Question 3

What is Futures?

Answer 3

There is an active market in a derivative investment in commodities called futures. They are not considered a security.

Question 4

SEC v W.J. Howey co

Answer 4

In 1946, the supreme court ruled in favor of govt v howey vo. They said ehat Howey sold was securities “ the sale of interest in his company to the public” and that he violated fed law by not reporting it.

Question 5

What is crypto currency?

Answer 5

It is a commodity, not a security.

Question 6

Name 2 major securities?

Answer 6

Stocks and Bonds