Investments are assets or items acquired for the purpose of generating interest payments, income, or appreciation in value. Real estate, stocks, bonds, options, annuities, mutual funds, cryptocurrencies, artwork, and collectibles are common examples of investments.
In Tennessee, investments are regulated by both state and federal laws to protect investors and maintain fair market practices. The Tennessee Securities Act of 1980 governs the registration and oversight of securities, including stocks, bonds, mutual funds, and certain types of investment contracts within the state. This Act requires the registration of securities, brokers, and investment advisors, and it prohibits fraudulent and other illegal practices in the sale of securities. The Tennessee Department of Commerce & Insurance's Securities Division is responsible for enforcing these regulations. Additionally, federal laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934, along with regulations enforced by the Securities and Exchange Commission (SEC), provide a framework for the disclosure of information about securities and protect against fraud. Other types of investments, like real estate, are subject to property laws, and items like artwork and collectibles are governed by laws pertaining to personal property. Cryptocurrencies, being relatively new, are subject to evolving regulations, with both the SEC and the Commodity Futures Trading Commission (CFTC) having jurisdiction over various aspects of digital assets.