RISK-CAPITAL TEST

risk-capital test.Securities. A test of whether a transaction constitutes the sale of a security

(and is thus subject to securities laws) based on whether the seller is soliciting risk capital with

which to develop a business venture. Cf. CAPITAL-RISK TEST. [Cases: Securities Regulation 5,

248, 249. C.J.S. Securities Regulation §§ 3, 9, 379–380, 384–387, 389–390, 392–393.] [Blacks Law 8^th]