speculative security

speculative security
A stock, bond, or other security the value of which materially depends on proposed or promised future promotion or development. Anno: 87 ALR 81. The term has been defined by a state blue sky law as including a stock, bond, note, contract, or other security, which shall, in subscription, issuance, sale, transfer, negotiation, or distribution, be represented to yield a profit to the purchaser or other transferee of more than eight per cent on the price at which it is offered. Superior Producing & Refining Co. v Handlan, Hearne & Co. 100 W Va 547, 548, 131 SE 857.

Ballentine's law dictionary. . 1998.

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