The Howey test for defining a security is based on three elements or characteristics: a) a common enterprise; b) a reasonable expectation of profit; and c) profits derived exclusively from one's own efforts.

Question

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The Howey test includes: a) an investment of money; b) in a common enterprise; c) with an expectation of profits primarily from the efforts of others, not one's own efforts.

The Howey Test for Defining a Security Is Based on Three