REVE (Residual Income and Equity Value)

Standard used to determine whether an investment contract is a security.

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REVE (Residual Income and Equity Value)

The REVE (Residual Income and Equity Value) test is a framework used by the Securities and Exchange Commission (SEC) to determine whether a security is a security under the Howey test, which is the standard used to determine whether an investment contract is a security.

The REVE test considers the r…