1. Would an investment in Microsoft stock satisfy the definition of “investment contract”? 2. Why do you think Congress added the term “investment contract” to the definition of “security”?
The Howey Company owned large tracts of citrus acreage in Florida. Each prospective customer was offered both a land sales contract and a service contract by which Howey maintained the groves and marketed the produce. Purchases usually were narrow strips that were arranged so that an acre consisted of a row of 48 trees.