Laws & RegulationsQuestion 87 of 110
Under the Uniform Securities Act, which of the following is excluded from the definition of a 'security'?
a.A corporate bond
b.A share of common stock
c.A fixed insurance policy or fixed annuity
d.An investment contract
Explanation
Fixed insurance policies and fixed annuities are generally excluded from the definition of a security because they do not involve investment risk to the purchaser in the same way. Stocks, bonds, and investment contracts are securities subject to registration and antifraud provisions. Variable annuities, by contrast, are securities.
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