WHERE DOES YOUR MONEY ACTUALLY GO ON THE GSE?
Many think buying shares always sends money to that company. Only true in ONE case. Here's the breakdown 👇
1️⃣ PRIMARY MARKET (IPO)
When a company first issues shares to raise capital, your money goes directly to the company for expansion, debt repayment, or new projects.
Example: Kasapreko PLC's IPO offered shares at GH¢1.20 each, targeting GH¢700 million. Demand was so strong it raised GH¢1.72 billion — more than double its target. Proceeds funded a new production facility. That money went straight to the company.
2️⃣ SECONDARY MARKET (After Listing)
Once trading begins, everything changes. Buying shares now sends your money to whoever is SELLING you those shares — not the company. It already got its capital during the IPO.
Kasapreko's share price has risen since listing day, but that reflects trading between investors, not new money entering the company.
3️⃣ WHERE DO FEES GO?
A small fee on every trade is split among:
• Brokers (Licensed Dealing Members)
• GSE (market operations)
• SEC (regulation)
• CSD (clearing & settlement)
None goes to the company itself.
💡 KEY TAKEAWAY
You only fund a company directly during its IPO. After listing, you're trading with other investors — price moves on demand, not because the company receives your money.
37 likes
22 comments
2051 views
Join the conversation on Wallflake
Connect with thousands of Ghana Stock Exchange investors. Share insights, discuss stocks, and grow your portfolio together.