Choice "C" is correct. An investment is a security if it is generally recognized as a security, mentioned in the Securities Act, or represents a profit-making investment, transaction, or scheme whereby one invests in a business and expects to make a profit from the efforts of others. A general partnership interest is not included within this definition because the partners take part in running the business and are not passive investors.Choice "a" is incorrect. Stock options generally are recognized as securities.
Choice "d" is incorrect. Warrants generally are recognized as securities.
Choice "b" is incorrect. A limited partnership interest is a security since the limited partner does not take part in management of the firm but, rather, is very much like a stockholder of a corporation.
