This work argues that the development of the Lusaka Stock Exchange into a competitive stock market has been constrained by a number of factors which include inadequate liquidity on the market and weaknesses in the legal framework for regulating public distribution of securities in Zambia. Proposals to overcome these constraints are spelt out in the work. The need to establish a regional stock exchange and promote multiple listings and cross-border trade in securities - so as to stimulate increased liquidity on markets in Eastern and Southern Africa - is noted. The study also provides a comparative analysis of the law in Zambia and that in jurisdictions such as the United Kingdom.