Q: 4
Which of the following is NOT required for a contract transaction or scheme to be classified as an
investment contract?
Options
Discussion
Honestly, these Howey Test questions are super repetitive in every practice-B all the way.
Had something like this in a mock, it's B.
C or B? But I think B is right since the Howey Test says the profits have to come mainly from others' efforts, not just from your own management. The other options are all required for an investment contract. Not 100% sure but that's how I remember it from the official materials. Agree?
Option D is pretty tempting since money investment feels obvious, but I think it's actually required for the Howey Test. B is the odd one here-profits coming only from the investor's own management isn't a contract under Howey. Seen similar wording throw people off, agree or am I missing something?
I don't think it's D like some have said, pretty sure B is correct. Under the Howey Test, it's profits generated mainly from others' efforts that matter, not from the investor’s own management. Option D is actually a requirement, so picking B makes more sense here. If someone sees it differently let me know.
B tbh. Similar questions come up in official practice tests and the study guide covers this Howey Test bit pretty well.
Its B
Probably B here. Profits from the investor’s own management don’t fit the usual passive expectation under the Howey Test. Anyone see a legal angle I’m missing?
B since if profits are coming from the investor's own management activity, it doesn’t meet the usual Howey Test criteria.
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