5.3. Rules for UK Equity Investors

The financial market in the UK is common law driven like the US, and great importance is given to laws from both local and federal courts. These laws have created a general framework for the UK financial systems; however, laws designed by the EU Banking and Financial Services Act are also available. This means that there is a great variety of legal solutions/typologies for equity investors. In the UK social and political attention is given to the “equity gap.”[7]

7 See MacMillan Committee, Report of the Committee in Finance and Industry, London, 1931.

These laws are considered crucial for equity investment development in the UK:

  • Industrial and Financial Corporation Act (1945) — Created public funds to sustain ...

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