Under the Howey Test,an Arrangement Is Considered an Investment Contract

question 46

True/False

Under the Howey test,an arrangement is considered an investment contract if there is an investment of money by an investor in a common enterprise and the investor expects to make profits based on the sole or substantial efforts of the promoter or others.

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Definitions:

Reasonable People

Individuals who act with common sense and wisdom, making decisions based on rational thinking.

Systematic Use

The methodical and consistent employment of a procedure, tool, or system for intended outcomes.

Environmental Influences

External factors that impact an individual's behavior, development, and lifestyle, including social, cultural, and physical environments.

Social Pressures

The influence exerted by society or social groups on individuals to conform to expected norms or behaviors.