UJI 14-4310. "Security"; defined.1

A “security” is any [ownership right] [right to an ownership position] [or] [creditor relationship] and includes any:2 [bond. A “bond” is any interest-bearing instrument that obligates the issuer to pay the bondholder a specified sum of money, usually at specified intervals, and to repay the principal amount of the loan at maturity.] [collateral-trust certificate. A “collateral-trust certificate” is a corporate debt instrument which is used to back collateral-trust bonds held by a bank or other trustee.] [certificate of interest or participation in a security] [[temporary or interim certificate for] [receipt for] [guarantee of]2 the right to purchase a security.] [warrant or right to subscribe to or purchase any security. A “warrant” or “subscription warrant” is a type of security which is usually issued together with a bond3 or preferred stock,4 that entitles the holder to buy a proportionate amount of stock, bonds, or debentures at a specified price, usually higher than the market price at the time of issuance, for a period of years or to perpetuity.] [right to subscribe to or purchase any security. A “right” or a “subscription right” is a privilege granted to existing shareholders of a corporation to subscribe to shares of a new issue of stock, bonds, or debentures before it is offered to the public, which normally has a life of two to four weeks, is freely transferable and entitles the holder to buy the new stock, bonds, or debentures below the public offering price.] [debenture. A “debenture” is an unsecured general debt obligation or loan backed only by the integrity of the borrower and usually documented by an agreement known as an “indenture.”] [draft. A “draft” is a signed, written order by which one party (drawer) instructs another party (drawee) to pay a specified sum to a third party (payee). The payee and drawer are usually the same person. A sight draft is payable on demand. A time draft is payable either on a definite date or at a fixed time after sight or demand.] [evidence of indebtedness] [interest or instrument commonly known as a security] [investment contract. An “investment contract” means a contract: 1. where an individual invests money; 2. in an undertaking or venture of two or more people or entities; 3. with an expectation of profit; 4. based primarily on the efforts of others. An “investment” is the use of capital or money to create more money.] [limited partnership interest. A “limited partnership” is an organization made up of a general partner, who manages a project, and limited partners, who invest money but have limited liability.] [note. A “note” is a written promise to pay a specified amount to a certain person or entity on demand or on a specified date.] [interest in oil, gas or other mineral rights other than a landowner royalty interest in the production of oil, gas or other minerals created through the execution of a lease of the lessor’s mineral interest.] [promissory note. A “promissory note” is a written promise committing the maker to pay the payee a specified sum of money either on demand or at a fixed or determined future date, with or without interest.] [[put] [call] [straddle] [or] [option]5 entered into on a national securities exchange relating to foreign currency.] [[put] [call] [straddle] [or] [option]5 on any [security] [group or index of securities including any interest therein or based on the value thereof].2] [subscription. A “subscription”6 is an agreement of intent to buy newly issued securities.] [stock. “Stock” is the ownership of a corporation represented by shares that are a claim on the corporation’s earnings and assets.] [treasury stock. “Treasury stock” is stock reacquired by the issuing company and available for retirement or resale.4] [voting-trust certificate. A “voting trust certificate” is a transferable certificate of beneficial interest in a voting trust, a limited-life trust set up to permit control of a corporation by a few individuals, called voting trustees. The certificates, which are issued by the voting trust to stockholders in exchange for their common stock,4 represent all the rights of common stock except voting rights. The common stock is then registered on the books of the corporation in the names of the trustees.]