Howey

Howey is a proper noun with multiple uses, including a surname, a geographic place name, and a term in U.S. securities law. As a surname, it is found among various individuals across regions. Howey-in-the-Hills, Florida, is a town in Lake County, known as part of the local geography of central Florida.

In securities law, the term Howey most often refers to the Howey test, established by the U.S. Supreme Court in SEC v. W.J. Howey Co. (1946). The test provides a framework for determining whether a transaction constitutes an investment contract and therefore a security. The four elements are:

- investment of money

- in a common enterprise

- with a reasonable expectation of profits

- to be derived from the efforts of others

The Howey test remains a foundational tool for regulatory analysis and judicial decision-making in the United States. It is frequently cited in cases involving traditional investment offerings as well as newer instruments, including some digital assets, where the question of whether a given arrangement constitutes a security requires evaluation under the four-part framework.