capital risk test

capital-risk test. Securities. A method of determining whether a transaction constitutes an investment contract (subject to securities laws), whereby if a substantial portion of the capital used by a franchiser to start its operations is provided by a franchisee, then the transaction is treated as an investment contract. [Cases: Securities Regulation 5.10. C.J.S. Securities Regulation §§ 3, 9–10, 33.]

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词条贡献者

法律翻译Jenna，欧洲顶尖商学院国际经济法专业，专注翻译各类与投资基金和私募股权有关的法律文件。