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Quotation from SEC v. W. J. Howey Co. by Supreme Court of the United States
“In other words, an investment contract for purposes of the Securities Act means a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party”
SEC v. W. J. Howey Co., Opinion of the Court (Justice Murphy) (U.S. Reports text (Wikisource))
Justice Murphy states the definition of an investment contract that became known as the Howey test.
Citation: "In other words, an investment contract for purposes of the Securities Act means a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party" — Supreme Court of the United States, SEC v. W. J. Howey Co., Opinion of the Court (Justice Murphy) (U.S. Reports text (Wikisource)). (id sec-v-w-j-howey-co-q1)
Portrait: Justice Frank Murphy, Harris & Ewing, Public domain.
