investment contract

investment contract

“Any contract, transaction or scheme whereby a person invests money in a common enterprise and is led to expect profits solely from the efforts of the promoter or third party,” is the definition used by the Securities and Exchange Commission (SEC).Investment contracts related to real estate come within the definition.Nationwide litigation is currently under way to say that purchases of units in hotel condominiums—condotels—are also investment contracts.If something qualifies,it is possibly subject to registration,reporting,and disclosure requirements imposed by the SEC.