Kevin has a pair of season tickets to the Boston Red Sox games.

If Kevin will be profiting from the sale of the packages, the packages are defined to be securities, but since he’s selling the packages to only a few people, he will not have to register them with the state. (Kevin may, however, be guilty of violating ticket scalping laws.)

Only if Kevin will be selling the packages at or below cost are the packages not considered to be securities, in which case Kevin will not have to register them with the state.

The packages are not considered to be securities since each package is merely a purchase and sale agreement between Kevin and another person. There is no third party involved. Because they do not meet the definition of securities, Kevin does not need to register them with the state.

Statements A and B are both true statements.