November 16, 2004

Prospectus Delivery

Today's WSJ (subscription required) reports that the NYSE is in the midst of an enforcement action against certain brokerage firms for failing to deliver prospectuses (prospecti?) to investors. While Section 5 of the 1933 Act is keyed around delivery of prospectuses, given that most investors have neither the time or inclination to read them, there is an element of a tree falling in the forest with no one around.

Posted by JDR at 10:25 AM