An investment contract is a legal document between two parties where one party invests money with the intent of receiving a return. Investment contracts are regulated by The Securities Act of 1933. For a contract to be considered valid in this category, it must contain the following elements which are laid out by the Howey test:

• An investment of money
• A common enterprise
• Profit expectation(s)
• Derived from the efforts of others

Although the Howey Test is not the sole testing method available it is the most common resource relied on to confirm that an investment contract meets the criteria of a security.