Here are some of the Frequently Asked Questions that we deal with on a daily basis at the Investment Club Network.

Q. What does IPO mean?
A. IPO stands for Initial Public Offering and refers to when a company initially goes to the general public via the Stock Market to offer its shares for sale and thus raise the money required to grow the company.

Q. Why do companies decide to go public and float on the Stock Market?
A. Generally the main reason why companies decide to float (making their shares available to buy by the general public) on the Stock Market is to gain access to the necessary funding to be able to financially support the future growth of the company.

Q. What other reasons can there be for a company to float on the Stock Market?
A. Sometimes the owners of the company float their company on the Stock Market as they want to sell some shares for immediate income.

Q. If the company is so good why would the owners want to sell some of their shares?
A. The immediate income received from selling shares allows the owners to benefit from the hard work they may have put into establishing and growing the company.
Q. What does ‘Sweat Equity’ mean? ‘Sweat Equity’ refers to the hard work and effort that the founders and owners of a company put into setting up a company without pay in the early formation days.

Q. Can anyone float their company on the Stock Market?
A. Yes any company can float provided the company meets the criteria asked for by the Stock Exchange that the company is been floated on.