risk capital test
risk-capital test. Securities. A test of whether a transaction constitutes the sale of a security (and is thus subject to securities laws) based on whether the seller is soliciting risk capital with which to develop a business venture. Cf. CAPITAL-RISK TEST. [Cases: Securities Regulation 5, 248, 249. C.J.S. Securities Regulation §§ 3, 9, 379–380, 384–387, […]