Fed. Sec. L. Rep. P 94,475 Mary F. El Khadem v. Equity Securities Corporation, a Corporation

OPINION

EUGENE A. WRIGHT, Circuit Judge:

This is an action to recover damages for alleged violations of the Securities Act of 1933, the Securities Exchange Act of 1934, and state law. Defendants moved to dismiss, claiming that the case does not involve the purchase or sale of a “security” and therefore neither the Securities Act nor the Securities Exchange Act confer jurisdiction on the district court. 1 The district court held that the case does involve the sale of a security and denied the motion to dismiss. Appellants appeal, 2 and we affirm.

I

BACKGROUND

Defendant Equity Securities Corporation…