What is NOT a Security

What this video covers

• Who bears the investment risk in insurance products, and why fixed annuities, whole life, term life, endowments, and disability insurance are all excluded from the definition of security
• The Variable Rule shortcut: why the word "variable" in variable annuity or variable life insurance makes it a security, while fixed guaranteed products are not
• Why tangible assets such as physical gold, collectibles, precious metals, direct real estate, and physical currency are not securities under the Uniform Securities Act (USA)
• How the Howey Test draws the line between direct ownership of a tangible asset and a pooled interest managed by a third party
• Why a gold exchange traded fund (ETF) or a real estate investment trust (REIT) IS a security even though the underlying physical gold or real estate is not
• The critical distinction between a bank certificate of deposit (CD), which is an FDIC-insured banking product, and a certificate of deposit for a security, which is a receipt for an underlying security
• How to read exam answer choices carefully and avoid traps based on similar-sounding names or incomplete phrases