Exercise
Choose if a security or not a security
- 1. _ A valuable antique musical instrument
- 2. _ A variable annuity
- 3. _ A term life insurance policy
- 4. _ A bond issued by a local school district
- 5. _ Interest in a collection of antique musical instruments
- 6. _ An option on commodities
- 7. _ A personal residence
Answers
- 1. Not a security. Collectibles, such as antiques, are not considered to be securities.
- 2. Security. Annuities without variable features are not considered to be securities. In contrast, variable annuities are securities.
- 3. Not a security. Because it is a fixed and non-variable type of insurance contract, a term life insurance policy is not an annuity.
- 4. Security. All bonds are considered to be securities.
- 5. Security. An interest in something, meaning a situation in which an investment in a common enterprise in which an investor expects to make a profit through the efforts of othe
