WHY YOU HAVE A SECURITY AND WHY IT MATTERS

If you have invested money into someone’s business venture, you have a security.

All investments create securities.

Back-of-the-envelop, hand-written agreement where one party puts up the money and the other party
manages the work?

You have a security.

Put some money in a real estate deal with close family and friends?

You have a security.

You invested in a non-profit 501 (c) (3) ?

You have a security.

Securities include not only stocks, LLC shares, options, promissory notes, investment contracts, but all
forms of investment interest. See California Corporations Code §25019 and 15 U.S.C. §77 b (a) for
examples, and remember that these examples are illustrative not definitive.*

Entrepreneurs and start ups seeking money from individual investors violate state and Federal securities
laws more often than you may think. Usually, they get away with it: Either the investors do not lose
money and so do not care about their remedies or they do lose money but are ignorant of their remedies.

California investors who have lost some or all of their money in private placements are often delighted to
discover their remedies under the California Securities Act. .

[*One of the few exceptions is when an investor is also actively involved in management (not merely is
given the right to participate in management); then the law treats him as a partner with partnership
remedies rather than securities remedies].
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Contact Private Placement Advisors LLC at 510-450-1895 for more information.