In frustration, many test-takers shout that the information they're expected to learn has nothing to do with the real world.
Actually, it does.
I've attended several disciplinary hearings at the IL "Administrator's" office, and--trust me--there is much overlap between the "real world" and the test world in these cases. The first hearing centered on the definition of "investment contract" that you've seen from the Howey Case. The respondent's attorney kept arguing that what his client had offered and sold was "not even a security," but, alas, he failed to persuade the hearing officer of this, and his client ended up in hot water. He had defrauded several investors by taking their money and depositing it into one of his many business accounts, without ever, like, investing it in the program he was selling.
Oopsie. Try not to do that if you can help it, especially if you might get caught.
At another hearing, an agent had borrowed money from a client to be used toward a real estate deal that went sour. In other words, a bullet point like "borrowing money from clients" is not just a memorization point--it's a problem that many agents (and principals) run into all the time in the so-called "real world."
If you'd like to see how "real world" the test world actually is, check out some of the enforcement orders at www.passthe63.com/enforcement
Also, go to your state's securities website and look for "enforcement" or "administrative actions." Most states are happy to name names, CRD and IARD numbers, etc. and tell the world to watch out for this particular agent, principal, investment adviser, adviser rep, or issuer of securities.
You'll probably enjoy studying a lot more once you see that what you're learning is, contrary to popular belief, COMPLETELY focused on the so-called "real world."
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