INDEX-DIGEST The following digest of decisions presents a consolidated summary of The case headnotes have not been carried over verbatim into this digest. 9 S. E. C. 1079 PART I SECURITIES ACT* OF 1933 DEFINITIONS UNDERWRITER Where for a substantial consideration consisting in part of an advance lump sum payment and in part of a percentage of the proceeds to be derived from the proposed sale of the securities registered, a person is to negotiate selling agreements between the registrant and others for the distribution of such securities, held that such person is an underwriter as defined in Section 2 (11) of the Act, and that the persons with whom selling agreements are planned are likewise underwriters in view of the substantial commissions which they are to receive for distribution of the securities . . . Page 889. STOP ORDER PROCEEDINGS ADMISSION AS TO USE of wrong form Where registrant, having filed its registration statement on form A-1, was duly notified prior to the effective date of the statement that form A-O-1 should have been used, and stipulated at the hearing that form A-0-1 was proper, held, that, nevertheless, untrue and misleading statements in form actually filed are open to analysis as basis for issuance of stop order ... Page 889. UNTRUE OR MISLEADING STATEMENTS OR OMISSIONS Registration statement erroneously filed on form A-1, and prospectus held to include untrue and misleading statements with respect to representations regarding registrant's business, the size of its proposed offering, its promoters, its underwriters and underwriting contract, the consideration for issuance of certain of its shares, the expenses of the proposed issue, and with respect to experts' reports... Page 889. *The term "Act" as used in Part I of this Digest refers to the Securities Act of 1933, as amended. 9 S. E. C. 1081 PART II SECURITIES EXCHANGE ACT* OF 1934 ASSOCIATION OF BROKERS AND DEALERS AMENDMENT TO RULES OF FAIR PRACTICE An amendment to the rules of fair practice of a registered national securities association consisting of an additional rule prescribing the manner in which and the price at which members of the association may purchase, sell, and redeem securities issued by open-end management investment companies in order to insure among other things that such prices accurately reflect the current asset value of such securities held consistent with the requirements of Section 15A (b) (7) of the Securities Exchange Act of 1934, Sections 22 (a) and (b) of the Investment Company Act of 1940 and permitted to become effective . . . Page 38. BROKER-DEALER REGISTRATION MEMBERSHIP IN NATIONAL SECURITIES ASSOCIATION Violation of Securities Act and Securities Exchange Act Where the respondent, in purchases and sales of securities, ostensibly as an agent, took secret profits by confirming buy orders at a price in excess of the actual purchase price and by confirming sell orders at a price less than the actual selling price, and further, accepted orders from customers for the purchase of securities for their accounts, and after falsely representing to such customers that he had purchased suth securities, requested and received payment therefor, held that respondent willfully violated Section 17 (a) of the Securities Act of 1933 and Section 15 (c) (1) of the Securities Exchange Act of 1934, and that it is in the public interest to revoke his registration as an over-the-counter broker and dealer and to expel him from the National Association of Securities Dealers, Inc., a national securities association registered under Section 15A of the Securities Exchange Act of 1934... Page 729. NATIONAL QUOTATION BUREAU SHEETS AS EVIDENCE OF PREVAILING MARKET PRICES Held that the daily quotation sheets of the National Quotation Bureau relating to securities traded over-the-counter are admissible as an indication of prevailing market prices... Page 1043. REVOCATION PROCEEDINGS Injunction Against Engaging in Conduct or Practice in Connection with Purchase or Sale of Securities Where registrant was permanently enjoined from engaging in or continuing any conduct or practice in connection with the sale of any security and, in viola *The term "Act" as used in Part II of this Digest refers to the Securities Exchange Act of 1934, as amended. 9 S. E. C. tion of Rule X-15B-2 of the Commission's me nder the bet می ment his registration statement to correct informata tega, den ment which was no longer accurate, held that a 4 pikile watu revoke registration . . . Page 27. Where the registrant is permanently enjoined from engig av vatturing certain conduct and practices in connection with the eff my mufig auf where registrant consented to the entry of an order revoking ta guration of a broker-dealer, held that it is in the public interest to revoke DEBIUTA Pages 218, 524. Where the registrant is permanently enjoined from engaging it outing any conduct or practice in connection with the sale of any securi: junction was issued on the basis of a complaint charging tha in the conduct and transaction of its securities business, engager tices to defraud and deceive the public, held that it is a revoke registration . . . Page 222. Where registrant was permanently enjoined from tugat; = certain conduct and practices in connection with tim ja ties; where, in violation of Rule X-15B-2 of the grum promulgated under the Act, registrant failed to ment and report the entry of such injunction associated with a number of securities true W. engaging in and continuing certain condus aut sale of securities and has been imprisoned or cour held that it is in the public interest to reon gePIR L SUSPENSION OR EXPULSION FROM KEREZXXXJ DE 22 779, Public Interest Where the Commission has issued an ofte og hurt ship on national securities exchanges 250 molly what broker-dealer registration; and where, og cating that the order may reasonably rule it is a 1819 business, held, the removal of the regarded tri sa been found not necessary in the pube sure with a cute yuraran A vestors; the order will be modified... Fap bol VIOLATION OF SECURITIES ACT AND EZOTKITU KICHINA, MOT Injunction Against Engaging in Conduct of or Sale of Securities Where registrant willfully violated Hernan Act of 1933 and Section 15 (c) (1) of boves the hero Ver the sale of oil royalties without regiseno rider Box GA* AM 8:0 br means of materially false and mislead w WITH THE is permanently enjoined from engag. n e t in uns zue practices in connection with the puri BANEGA, held fr in the public interest to revoke his regim bu yay the comuniter broker m dealer... Page 625. Misrepresentations of Material Facts Where, in the sale of securities to its te eregendent broker-deat material misrepresentations concerning vailing market price of such securities, bed (a) of the Securities Act and Section 2 Act... Page 1043. Gy of the Morties Ex |