Question: What Is a Security?
Howey Company and Howey-in-the-Hills Service, Inc., are Florida corporations under com-mon control and management. Howey Company offers to sell to the public its orange grove, tree by tree. Howey-in-the-Hills Service, Inc., offers these buyers a contract wherein the appropriate care, harvesting, and marketing of the oranges would be provided. cost of the buyers who sign the service contracts are nonresidents of Florida who have very httle knowledge or skill needed to care for and harvest the oranges. These buyers are attracted by the expectation of profits. Is a sale of orange trees by the Howey company and a sale of services by Howey-in-the-Hills Service, Inc., a sale of a security? Why or why not?