Legal Definition and Related Resources of Investment Contract

In the context of statutes relating to securities , the phrase means an investment of money in common enterprise where the investor expects to reap profits from the efforts of the promoter or a third party . See Securities & exchange commission v Energy Group of America, Inc., (D. C.N. Y.) 459 F.Supp. 1234. A common enterprise need not be a common fund , but, rather such term denotes an interdependence of fortunes, a dependence by one party for his profit on the success of some other party in performing his part of the venture. See McClellan v Sundholm, 574 P.2d371, 89 Wash.2d527.

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Investment Contract in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Investment Contract in Historical Law in the Encyclopedia of Law.

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