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Question
Brent has opened a fruit and vegetable business named Brent's Country Stand near an affluent suburban neighborhood. After six months Brent wishes to raise capital for expansion, so he offers a number of his customers the following deal: If the individual gives Brent $10,000, Brent will provide a promissory note, payable in five years with full repayment of the principal and a 10 percent interest rate of return. Brent's Country Stand is the maker of the notes, and about 10 customers have purchased these notes. Do these promissory notes qualify as securities? Why or why not?
Answer
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