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A "security" by law is any offer promising to bring you money later in exchange of your money now and through no participation of your own. Public solicitation
by DenisM 17y ago
A "security" by law is any offer promising to bring you money later in exchange of your money now and through no participation of your own. Public solicitation thereof is illegal under 1933 Securities Act. This law was intended to regulate exactly things like these, where individual small-time investors are presented with opaque package promising riches.
Timeshares you are supposed to live in, which make is not a security.
Not a legal advice.
- jswinghammer 17y agoI realize there is a difference but it seems like the people promising homeowners riches for just living in their house are no better than any scammer promising riches later. I suggested the comparison just to point out that this is a real estate transaction like any other from one point of view.