Explain the following concept:

Mis-statements in Prospectus

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1 Answers

  • Mis-statements means:
  • The statement is misleading in form or content. 
  • Where any inclusion of statement or omission is likely to mislead the reader. 
  • If the investor has purchased shares based on the misleading information in the prospectus he can take action against the company. 
  • The company and persons will be responsible for issuing mis-statement prospectus and have to face liability.

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