Trowbridge v. O'Neill

The defendant is a broker and a member of the Detroit Stock Exchange. His business is buying and selling stocks and bonds. The record discloses that in 1922 the Dort Motor Company was authorized to issue 200,000 shares of no par stock, of which amount 125,000 shares were held in escrow by the Michigan securities commission. Twenty-five thousand of the shares released were underwritten by McClure, Jones & Reid, of New York, and Perry, Seymour & Bonbright, of Flint. These underwriters offered to sell portions of this stock to a selling group, and the defendant subscribed for about 3,000 shares.…