Chapter 6 explained the process of buying and selling shares already listed on the sharemarket. This is the activity that the majority of people are engaged in when they participate in the sharemarket.
However, before shares can be bought and sold on the sharemarket, they are issued in the primary market by companies via a float or initial public offering (IPO).
The same fundamental analysis principles and methods are required whether you are buying shares in a new float or buying existing shares. The major differences are that the principal source of information in a share float is the product disclosure statement, also known as a prospectus, and there is no share price or dividend history.