> Serious question, under this test, why shouldn't an ordinary savings account be considered a security? Do banks just have a grandfathered exemption?
I'd guess a savings account at least fails the "common enterprise" part of the test.
From the linked PDF:
> Lower courts have disagreed about the proper test for assessing the “common enterprise” element
of the Howey test, and have adopted three basic approaches to this requirement: (1) “horizontal
commonality,” (2) “broad vertical commonality,” and (3) “narrow vertical commonality.”105
Under the horizontal commonality approach, a “common enterprise” exists where investors pool
assets and “share in the profits and risks of the enterprise.”106 By contrast, vertical commonality
emphasizes the relationship between an investor and the promoter of an enterprise. Under the
broad vertical commonality approach, a “common enterprise” exists where an investor’s fortunes
are dependent on the efforts or expertise of the promoter or his agents.107 Under the narrow
vertical commonality approach, a “common enterprise” exists where an investor’s fortunes are
dependent not only on a promoter’s efforts or expertise, but also on a promoter’s profits.108
