California | Investment Law
Legal Question
investment in an event
Is there a certain percentage that people receive on an investment with no gurantee of return
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Legal Answer
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Read More Answered By: Bryan Whipple |
Re: investment in an event No.
Investments fall into two categories, loans and equity.
Loans include an expectation that the investment will be repaid sometime, usually with interest, and often the loan will be secured by some kind of collateral or guarantee, such as a bond, a deed of trust, a security agreement, or the like.
Equity investments do not include an expectation of repayment at a fixed time or on a fixed schedule. Instead, people who buy stock in a company, one of the more common ways to make an equity investment, expect to share in the profits of the business, either through dividends or through its long-term growth.
Anyone who puts money into a venture without either a promise of repayment or the realistic expectation of sharing in profits is probably better known as a donor than as an investor. |
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