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Currency Root :: Library :: Glossary :: Investment contract

An "investment contract" is an agreement to invest money in an enterprise with the expectation of ultimately gaining profit.  The key characteristics of an investment contract generally includes the following four fundamental properties:

  1. an investment of money
  2. the investment is used to fund a common enterprise
  3. investors have an expectation of profitability
  4. profitability is primarily the result of the efforts of others who are involved in operating and maintaining the common enterprise
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