Prospectus

The purpose of a prospectus of an intended company is merely to invite persons to become allottees of the shares, or original stockholders in the company. a prospectus of an intended company ought not to misrepresent actual and material facts, or to conceal facts material to be known, the misrepresentation or concealment of which may improperly influence and Brewer v. Jacobs, 2-3 F. E. 217-44 (1885), cases; 24 Cent. Law J. 663 (1887), cases; 26 id.

886-88 (1888); 13 F. R. 253; 35 Ind. 15, 286; 43 id. 65; M La. An. 246; 4 Cush. 239; 30 Minn. 518; 76 Mo. 669; 100 Pa. 94; 13 R. I. 617; 64 Tex. 673. 'Cooley, Torts, 185; Peck v. Chouteau, 91 Mo. 149 (1886), cases. 3 Lowe V. Wartman. 47 N. J. L. 413 (1685). » Muldoon V. Rickey, 103 Pa. 112 (1883), cases; Burton t-.

St. Paul, &c. R. Co.', 38 Mmn. 191 (1885); 18 Cent Law J. 242-45 (18&4), cases; 32 Alb. Law J. 124-26, 145-48 mislead the reader; for it he is thereby deceived into becoming an allottee of shares, and, in consequence, suffers loss, he may proceed against those who thus misled him.'