Question

Scott invests money in fixing up his house, an endeavor that he expects will generate profits because he will be able to rent it out as a bed and breakfast run by his sister. This is not a security subject to federal regulation because:_______.

Answer 1

Answer:

Scott's investment is in his own property and not in a common enterprise

Explanation:

From the question, we are informed about Scott who invests money in fixing up his house, an endeavor that he expects will generate profits because he will be able to rent it out as a bed and breakfast run by his sister. In this case , it is not a security subject to federal regulation because Scott's investment is in his own property and not in a common enterprise. Securities regulation is a law in court like U S that protect transaction as well as other dealing involving security, when a company fully comply with the security regulation, litigation can be avoided by the business with private party as well as security commissioners