Chapter 2 - § 2.12 •CONCLUSION

• Jurisdiction: Colorado

§ 2.12 •CONCLUSION

Promoters and their attorneys should realize that whenever the promoter seeks to use other people's money to further his or her own enterprise, the promoter is likely to be offering a security, regardless of what they name the investment opportunity. To quote the Supreme Court in the 1946 case of SEC v. W. J. Howey & Co.,¹⁴³ the definition of the word security "embodies a flexible rather than a static principle, one that is capable of adaptation to meet the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits."¹⁴⁴

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Notes:

^[143] SEC v. W. J. Howey & Co., 328 U.S. 293 (1946).

^[144] Id. at 299.