| The Howey test would mean Nike shoes are securities. - Investment of money: Nike charges for shoes. - Expectation of profit: people buy limited edition expecting hoping they go up in value. - Efforts of others: The shoes go up in value because Nike won’t issue more shoes, will promote the shoes, and will continue to make investments in its brand. Also these all pass the Howey test and in your view would be securities: - Breakfast cereal with toys inside - Condos - World of Warcraft items And essentially anything people might sell for a profit. The Howey test is a starting point but no matter what the SEC says, the courts don’t actually believe that everything is a security. The Howey test is not enshrined in law but is rather a heuristic starting point. |