Question: Dubois sold Hocking a condominium that included an option to participate in a rental pool arrangement. Hocking elected to participate in the arrangement. Under it,

Dubois sold Hocking a condominium that included an option to participate in a rental pool arrangement. Hocking elected to participate in the arrangement. Under it, the rental pool's agent rented condominiums, pooled the income, and after deducting a management fee, distributed the income to the owners on a pro rata basis. Hocking brought a Rule 10b-5 fraud action against Dubois. Dubois contended that the sale of the condominium was not a security under the securities acts, so Hocking could not bring a securities suit against her. Was Dubois correct? [Hocking v. Dubois, 839 F.2d 290 (9th Cir.)]

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