Business: Downtown

In the Securities Act of 1933 wilful misstatement of or "omission to state any material fact" in connection with a registration statement is a criminal offense. No court has yet defined a "material fact," but last week in a lengthy ruling the Federal Trade Commission declared that a material fact was "a fact which if it had been correctly stated or disclosed would have deterred or tended to deter the average prudent investor from purchasing the securities in question."

Every bondsalesman knows that few investors (except professional security buyers) ever read even the few...

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