Secured Investment Contracts are similar to stock in that they are offered by corporations as a way to raise money from the public. The benefit to having SIC instead of stocks is that there is a payment schedule so you will know exactly how much you will get back and when. Here is an example:
If you were to buy ABC's stock you have no idea what happens to the money over the next 12 months. It may go up and it may go down. You can make educated guesses, but that's really all it is.
Now ABC company offered a "secured Investment Contract" they would tell you something like on payment date June 15, 2009 your scheduled return is 227%. Every penny is owed to you by law!
So if you invested $10,000 then you would be set to collect $32,700 over the next 12 months.
So it can be a good investment.


