Logourl black

Howey Test

Definition

Legal test for determining whether an instrument is an investment contract, and thus a security under the Securities Exchange Act of 1933; an investment contract is any (1) investment of money into a (2) common enterprise (3) with the expectation of profits (4) solely from the efforts of the promoter or a third party.

Related Rules [?]


The related rules section is for members only and includes a compilation of all the rules of law in Quimbee's database relating to this key term.

To access the related rules, please start your free trial or log in.