What is a Security?

The video discusses the broad statutory definition of securities, which includes ownership interests in businesses like stocks and bonds. It highlights the concept of investment contracts, where value is created through the efforts of others. The statute is designed to be broad to prevent consumer fraud and deceptive practices, covering various methods that could mimic traditional securities. A separate video will further explore investment contracts.

What does the broad statutory definition of securities include?

• Only stocks

• Only bonds

• Only notes

• Various financial instruments like stocks, bonds, and notes

Which of the following is NOT mentioned as a financial instrument in the definition of securities?

• Bonds

• Stocks

• Notes

• Real estate

What is an investment contract generally associated with?

• Relying on others' efforts to create value

• Owning a personal business

• Investing in real estate

• Purchasing a physical asset

What is the purpose of the broad nature of the statute?

• To focus only on stocks

• To limit the definition of securities

• To exclude certain financial instruments

• To include methods that could lead to consumer fraud

What will be discussed in a separate video according to the transcript?

• The definition of stocks

• The concept of bonds

• Investment contracts in detail

• The history of securities