b'5. Understand How Securities Laws Apply to YouBased on this test, here is a good rule of thumb: Whenever you take control of an investors money, and they are relying on someone other than themselves to make a profit, you have created a security. Whats Not an Investment Contract?A true joint venture, in which all participants have a meaningful and substantial role in management of the company other than just partici-pation in voting, is not an investment contract, according to the 4-Prong Howey test. This is true even if some of the participants are providing money and others are providing services. Using angel investors or venture capital to fund your company also rare-ly involves an investment contract because the angel or venture capitalist is unlikely to hand over their money without taking a management role in your company. For this reason, your relationship does not meet the Howey test for an investment contract. 37'