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LSDefine

Simple English definitions for legal terms

investment contract

Read a random definition: hanging in chains

A quick definition of investment contract:

An investment contract is an agreement where someone invests money in a project or business with the expectation of making a profit. The investor does not have control over the decisions made by the project or business, and the profit is solely dependent on the efforts of the promoter or a third party. It is like giving someone money to start a lemonade stand and expecting a share of the profits without having any say in how the lemonade stand is run.

A more thorough explanation:

An investment contract is a type of agreement or transaction in which a party invests money in the expectation of profits derived from the efforts of a promoter or other third party. It is a contract in which money is invested in a common enterprise with profits to come solely from the efforts of others.

For example, if an individual invests money in a startup company and expects to receive profits from the company's success, it is considered an investment contract. The investor does not have control over the company's managerial decisions but is relying on the efforts of the company's promoters or third parties to generate profits.

Another example is a guaranteed investment contract (GIC), in which an institutional investor invests a lump sum with an insurer that promises to return the principal and a certain amount of interest at the contract's end. The investor is relying on the insurer's efforts to generate profits and is not involved in the decision-making process.

Overall, an investment contract is a flexible principle that can adapt to various schemes devised by those seeking to use the money of others on the promise of profits.

Investment Company Act | investment-direction agreement

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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