State v. Hood

The purpose of the Kansas Securities Act (K.S.A. 17-1252 et seq.) is to place the promoting and dealing in speculative securities under rigid governmental regulation and control to protect investors by preventing the sale of fraudulent and worthless speculative securities. Speculative securities include those of which the value materially depends upon proposed or promised future promotion or development, rather than on present tangible assets or conditions. The test to be applied in determining whether a particular financial relationship constitutes an investment contract is whether the…