Securities Regulation. Mary and Paul withdraw from DSI to set up their own firm. To obtain operating capital, they solicit investors, who agree to become "general partners." Mary and Paul designate themselves "managing partners." The investors are spread over a wide area geographically and learn about Mary and Paul's business only through contact from Mary and Paul. Are Mary and Paul truly soliciting partners, or are they selling securities? What are the criteria for determining whether an investment is a security? What are the advantages and disadvantages of selling securities versus soliciting partners?