2 ms·
What about the investment of record labels in Music contracts with musicians? If we are to look at the postulates of the Howey test it would probably pass them
by max_ 3y ago
What about the investment of record labels in Music contracts with musicians?
If we are to look at the postulates of the Howey test it would probably pass them. I don't see them Trying to force record labels to register with the SEC.
- ivalm 3y agoBecause they are not passing those investments to retail? Everyone involved is either (1) accredited investor (2) involved in the running of the business.
- CPLX 3y agoThe contracts themselves are not traded directly. If they were they’d obviously be a security. Large record labels do of course have stock in their companies which is a security and is traded.
- Animats 3y agoYou can buy shares in music royalties.[1] Those are investments registered with the SEC, and the issuer is an SEC-registered broker/dealer with FINRA regulation and SIPC insurance. Your song portfolio may be a dud, but the company behind this has to account for the money they collect, and people will be held responsible if it goes missing. [1] https://www.songvest.com/how-it-works https://www.songvest.com/how-it-works
- junofan 3y agoThe page literally says they aren’t registered. The copy is made to look like they are.
- Animats 3y agoNo, they registered their offering. Here are all the documents filed with the SEC.[1] There's a prospectus, and annual reports. [1] https://www.sec.gov/edgar/search/#/q=SONGVEST https://www.sec.gov/edgar/search/#/q=SONGVEST
- junofan 3y agoFiling stuff on EDGAR isn't registration under the Securities Act.