Companies sell shares as a way of raising capital. We call this a float or an initial public offering.
Before deciding if you wish to buy shares, you should read the prospectus.
The prospectus must contain key information about the company and must be lodged with ASIC.
Some of the information you would expect to find in the prospectus is as follows:
If after reading the prospectus you have doubts about the company’s prospects, make sure you get professional advice before investing.
Buying shares in a company without reading the prospectus is like buying a car without opening the hood.