The QE Venture Market provides a listing and trading venue for stocks of smaller companies, under a more flexible regulatory regime than is applicable to the Main Market. The market will allow these small and medium enterprises to access the required funds necessary for growth provided by those sophisticated investors attracted to the potential long term capital gains associated with this type of company.
Smaller companies are more susceptible to financial shocks which may have adverse effects on their value resulting in losses for shareholders. However, as these are growth companies, capital and income gains may be enjoyed by investors.
As such, companies listed on this market have a higher investment risk, which may or may not be attractive or appropriate to individual investors. Any prospective investor should seek appropriate guidance from investment professionals prior to making any decision to invest in these companies. The risk profile is more suited to professional and sophisticated investors who are aware of the characteristics associated with this type of market.
As the companies listed on the QE Venture Market are emergent, the prices of these stocks may be volatile and liquidity may be constrained.
Whilst the risk profile of companies on the QE Venture Market is higher investors’ trades will continue to be transacted and settled in the same secure environment as Main Market companies.