Public and Private companies

(1. There are two types of public companies listed and unlisted. The difference between them is listed company has access to stock market but unlisted company does not?) Hello Syed and welcome to the Law forum. There are many differences between Public Listed and Public Unlisted Companies but you are correct in identifying the essential difference! The names give away the difference – the first is listed (on a recognised stock exchange) whereas the second is not listed (on a recognised stock exchange)

(2. Both listed and unlisted public companies can invite people to buy shares but the difference is that listed companies are allowed to issue shares in stock market but unlisted public companies are NOT allowed to issue shares in stock market?) Again, you are essentially correct. However, even though a public UNLISTED company does not have a stock exchange listing, there is nothing to prevent such a company from inviting the public to subscribe for shares for example by way of a prospectus or advertisement in a newspaper.

(3. Private companies are NOT allowed to issue shares in stock market (alike unlisted public company) but they can issue shares to other people. Would you please let me know what does the other people could possibly mean here?) Private companies are not allowed to INVITE THE PUBLIC TO SUBSCRIBE FOR SHARES, for example by way of a prospectus or advertisement in a newspaper. However, without it being a public invitation , a private company can approach individual members of the public and invite them separately and individually to subscribe. This is known generally as a ‘private placing’

Is that ok?