The Vermont Uniform Securities Act contains a broad definition of the term "security." Thus, the popular concept of what constitutes a security -- stocks and bonds -- is incomplete. The term also includes, among other things, limited partnership interests; notes; variable annuities; evidences of indebtedness; interests in or under an oil, gas or mining lease; and "investment contracts." 9 V.S.A. § 5102(28)
Generally, an investment contract is an arrangement whereby an individual invests something of value in a common enterprise with an expectation profits to be derived primarily from the efforts of a person other than the investor. A “common enterprise” means an enterprise in which the fortunes of the investor are interwoven with those of either the person offering the investment, a third party, or other investors.
Any time a security is offered or sold in Vermont, the security must be registered and must be sold by a registered person unless an exemption is available under the Act or Rules or federal law provides an exception from state registration.
Above all, if you ever have any doubts or questions whether you are dealing with a security, contact the Vermont Securities Divison at 802-828-3420 or via email.