Reference no: EM133011480

Upstart, Inc. raises capital for its operations by offering unsecured promissory notes in $1,000 denominations to many individual investors. The notes mature in six months and, if not redeemed, become payable in six-month intervals thereafter.

Problem 1: Regarding the above, select the most accurate statement.

a) When the transaction is analyzed under the Howey test, it meets the definition of a security.
b) When the transaction is analyzed under the 4 factor test outlined in Reves v Ernst & Young it meets the definition of a security.
c) The transaction above is a debt transaction but falls outside the definition of a security.
d) None of the above are accurate statements.