The legal standard established by the Supreme Court in 1946 to determine whether a financial arrangement qualifies as a “security” subject to federal securities laws. Under the Howey Test, an arrangement is considered a security if it involves (1) an investment of money, (2) in a common enterprise, (3) with an expectation of profit, and (4) derived from the efforts of others. Named for case SEC v. W.J. Howey Co., the test is applied by regulators when evaluating unconventional financial products. See Securities and Exchange Commission