Securities and Exchange Commission v. W. J. Howey Co.

“Investment contract” is not a term of art; it is a conception dependent upon the circumstances of a particular situation. If this case came before us on a finding authorized by Congress that the facts disclosed an “investment contract” within the general scope of § 2 (1) of the Securities Act, 48 Stat. 74,15 U. S. C. § 77b (1), the Securities and.Exchange Commission’s finding would govern, unless, on the record, it was wholly unsupported. But *302that is not the case before us. Here the ascertainment of the existence of an “investment contract” had to be made independently by the District Court…