Original scientific paper
THE ROLE OF PROSPECTUS DOCUMENTATION AND PROSPECTUS LIABILITY
András Kecskés
; Faculty of Law – University of Pécs, Hungary
Vendel Halász
; Faculty of Law – University of Pécs, Hungary
Abstract
The basic means to ensure the investor protection and market efficiency in an initial public offering transaction is to provide full information concerning the securities and issuers of those securities. The appropriate way to make this information available is to publish a prospectus. The structure and content of the prospectus documents are subject to detailed legal regulation in the European Union. Furthermore, to facilitate the coherent and reliable drafting of prospectuses, a separate liability regime attaches to the content of these documents in the law of capital markets. This takes a fairly similar characteristic in the developed economies, such as in the European Union and the United States. Also the techniques of mitigating this kind of liability risk have evolved. With conducting a complex, so-called due diligence examination, belief can be acquired about the reliability and entirety of the published information, and so legal risks can be mitigated or avoided. In this Article the authors would like to provide insight into this core issue of initial public offering transactions, which could be relevant for all investors and capital market lawyers.
Keywords
initial public offering; due diligence; investor; prospectus; underwriter
Hrčak ID:
155901
URI
Publication date:
30.12.2015.
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