Case in Point Forman V

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in the 1946 case securities and exchange commission versus w.j howie company the united states supreme court established a three-part test for determining whether a scheme represents an investment contract and therefore a security under the securities act of 1933. under the howie test a scheme is an investment contract if there's an investment of money there's an expectation of profits and profits would arise solely from the efforts of others in the 1975 case united housing foundation incorporated versus foreman the court considered whether shares of stock that were sold in a housing cooperative qualified as securities under the howie test co-op city was a large low to moderate income housing project in new york city the project was initiated and sponsored by the united housing foundation or uhf a non-profit corporation in addition uhf organized riverbay corporation to own and operate co-op city to acquire an apartment in co-op city an eligible buyer had to purchase 18 chairs of stock