# kaal:claim:5583610-020

**Claim.** Non-transferability is what defeats the expectation of profits prong: because LER vouchers cannot be listed, traded, or resold, no capital appreciation is possible and their value comes from merchant redemption rather than issuer performance.

**Type.** mechanism  **Support.** argued

**Holds when.**

- vouchers stay non-transferable and confined to the merchant ecosystem

**Source quote.**

> Expectation of Profits: LER as vouchers are non-transferable, have no inherent value, are not listed as fungible assets, and cannot be traded. As such, LER issuance precludes any expectation of profit through capital appreciation.

**From.** Wulf A. Kaal, *Liquid Equity Rewards in Corporate America* (2025), 3.2. U.S. Securities Regulation, page 12

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

**Verify.** sha256 of source PDF `2d73609d95ddb1573acc2a9e7af617fbe6283d6e591deb6317f6d5d804517c62` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards%20in%20Corporate%20America.pdf

**Topics.** securities-law

**Keywords.** non-transferability, expectation-of-profits, howey-test, merchant-redemption

**Related claims.**

- specializes: https://wulfkaal.github.io/claims/4021599-014
- extends: https://wulfkaal.github.io/claims/5454054-023

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