Fed. Sec. L. Rep. P 95,523 Max Grenader, Plaintiffs-Appellants-Appellees v. Milton Spitz, Defendants-Appellees-Appellants, Bernard Cooper

MULLIGAN, Circuit Judge:

We are presented here with the question whether the sale of the stock in a privately owned and operated New York City apartment house cooperative constitutes the sale of a “security” within the Securities Act of 1933 (15 U.S.C. § 77a et seq.) and the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.). We answer the question in the negative primarily on the authority of United Housing Foundation, Inc. v. Forman, 421 U.S. 837, 95 S.Ct. 2051, 44 L.Ed.2d 621 (1975).

This action was commenced in the United States District Court for the Southern District of New York by…