United States definition of securityhowey test

SEC v WJ Howey Co

328 US 293 (1946)

JurisdictionUnited States

CourtSupreme Court of the United States

Year1946

StatusBinding authority

Key Principle

An 'investment contract' under the Securities Act is (1) an investment of money (2) in a common enterprise (3) with an expectation of profits (4) solely from the efforts of others (the Howey test).

Area of Law

corporate

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