Practice question
An instrument satisfies the investment-contract definition, while its particular sale qualifies for a valid registration exemption. Explain why exemption does not mean the Howey elements disappeared, and why classification does not by itself settle every registration question.
Legal references
- RA8799 Securities Regulation Code: https://lawphil.net/statutes/repacts/ra2000/ra_8799_2000.html Sections3.1(b),8–10.
- Power Homes Unlimited v. SEC, GR164182, February26 2008 MAIN: https://lawphil.net/judjuris/juri2008/feb2008/gr_164182_2008.html MAIN investment-contract definition.
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