ABSTRACT
The main reason why a public limited company is created is because the business venture to be pursued calls for more capital than is usually available to a private company. The source of large-scale capital is public subscription for shares or debentures offered by the company. This chapter makes students recognize that there is a real probability that false claims could be made in documents issued in conjunction with public offers of company securities. The regulation of public issues of securities is contained in the Public Offer of Securities Regulations 1995 and Part IV, Financial Services Act 1986 as amended by the Regulations. To establish the specific regulations that operate it is necessary to determine the origin of the securities obtained. The most well known public share market is the London Stock Exchange for companies who have gained a listing for their securities. For public companies without such a listing their shares may be traded on the Alternative Investment Market.
