Frequently Asked Questions
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Grow Your Money Wisely
Q: How do I know if what I am buying or selling is a security?
Arizona courts look at the substance of a transaction rather than what the transaction is called in order to determine whether a security is involved. A rule of thumb with which to start is that if the person providing the money is not the person who has control of the transaction and the person providing the capitalization expects to earn a profit, the transaction probably involves a security. If you want to use someone else’s money to finance your business venture, you are probably offering a security.
Arizona law defines “security” very broadly so that investors are protected and that promoters and issuers of securities bear the burden of complying with the law and making sure the investors understand the deal.
For more information on some specific securities, click on the following links or visit the investment product information section:
Viatical and Life Settlements
The information provided on this website is not comprehensive, is not offered as legal advice, and is not a substitute for competent legal counsel. The Securities Division provides this information to give you an overview of the topics discussed. You should not rely on the accuracy of this information, but should carefully review all applicable statutes and regulations with the assistance of legal counsel.