Section 2

Citation: Section 2
Parent Document: United Housing Foundation, Inc. v. Forman, 421 U.S. 837 (1975)
Jurisdiction: United States (federal)
Effective Date: 1975-10-06
Original Source: https://www.courtlistener.com/opinion/109272/united-housing-foundation-inc-v-forman/ ↗

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The Court of Appeals, as an alternative ground for its decision, concluded that a share in Riverbay was also an “investment contract” as defined by the Securities Acts. Respondents further argue that in any event what they agreed to purchase is “commonly known as a ‘security’ ” within the meaning of these laws. In considering these claims we again must examine the substance — the economic realities of the transaction — rather than the *852names that may have been employed by the parties. We perceive no distinction, for present purposes, between an “investment contract” and an “instrument commonly known as a ‘security.’ ” In either case, the basic test for distinguishing the transaction from other commercial dealings is

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