Corporation Finance; And Exposition of the Principles And Methods Governing the Promotion

Cover Corporation Finance; And Exposition of the Principles And Methods Governing the Promotion
Corporation Finance; And Exposition of the Principles And Methods Governing the Promotion
Lough, William H. (William Henry), B. 1881
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These principles are treated in the volume on Business Obgakizatiok and need not be reviewed here. Something should be said, however, about the document in which the leading facts with regard to the securities are stated and the pros- pects of the company discussed, namely, the prospectus.
118. General characteristics of a good prospectus. — The promoter's prospectus should be and with successful flotations always is a work of art. A good prospectus will appeal to a large number of people, will
... arouse their interest, will hold their attention from beginning to end, and will engender confidence. A poor prospec- tus will nullify whatever success the promoter may have had in stimulating curiosity on the part of the prospec- tive buyers of his securities.
It goes without saying that it should be well written and attractively printed. In this respect the same rules that apply to other selling literature should be followed.
Naturally the prospectus wiU emphasize the strong features and minimize the weak spots of the business.


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