Question 1

What are stocks?

Accepted Answer

A stock is a security representing a share of a company's equity. As a shareholder, you are a co-owner and may benefit from price appreciation and possibly dividends — but you also bear the company risk.

Question 2

How are stocks bought?

Accepted Answer

Stocks are purchased through an exchange or trading venue. In practice, you need a securities account with a bank or broker. Through this account you place buy orders — execution happens via the exchange or a market maker.

Question 3

Who do you buy stocks through?

Accepted Answer

Purchases are typically made through a licensed broker or bank with securities trading authorization. They route your order to the exchange or directly to a market maker. PeLu Invest is not a broker — we guide you through selection and execution while the transaction runs through the respective trading partner.

Question 4

What is a stock exchange?

Accepted Answer

An exchange is a regulated marketplace where securities are traded under fixed rules. It ensures transparency, price discovery, and proper settlement. Well-known examples include NYSE, NASDAQ, and Euronext.

Question 5

What is capital gain?

Accepted Answer

A capital gain occurs when the sale price of a stock exceeds the purchase price. Example: you buy at €100 and sell later at €130 — the gain is €30 per share (minus fees and taxes).

Question 6

What are dividends?

Accepted Answer

Dividends are profit distributions that companies may pay to shareholders. Not every company pays dividends — some reinvest all profits into growth.

Question 7

What risks exist when buying stocks?

Accepted Answer

Stocks are subject to price fluctuations and can lose value — up to total loss in extreme cases. Other risks include liquidity risk, currency risk for foreign stocks, and company-specific risks. Diversification and informed decisions can reduce but never eliminate risk.

Question 8

What is a securities account?

Accepted Answer

A securities account (depot) is held at a bank or broker where your securities are custodied. Through it you place buy and sell orders and view your holdings.

Question 9

Is there a minimum investment?

Accepted Answer

This depends on the security and trading partner. Some stocks can be bought for the price of a single share; other markets or instruments require higher minimum amounts. PeLu Invest advises you individually on available options.

Question 10

How do stocks differ from other investments?

Accepted Answer

Unlike fixed-income investments (e.g. bonds), stocks do not offer a fixed return — returns depend on price development and dividends. Compared to funds, individual stocks give direct company exposure but carry higher single-asset risk.

Question 11

What is an IPO?

Accepted Answer

IPO stands for Initial Public Offering — the first public sale of company shares on a stock exchange. A previously private company goes public, allowing investors to buy shares through the regulated market.

Question 12

Why do companies go public?

Accepted Answer

Companies use an IPO to raise capital, increase visibility, or give early investors an exit. For investors, an IPO opens the opportunity to participate early in a company.

Question 13

How can I participate in an IPO?

Accepted Answer

Participation is usually through a broker or bank involved in the subscription process. You subscribe for a number of shares at the issue price. Not every subscription is fully allocated — demand often exceeds supply.

Question 14

What is a lock-up period in an IPO?

Accepted Answer

A lock-up period is a contractually agreed timeframe during which acquired shares may not be sold. It typically starts with the listing and can last several months to over a year.

Question 15

Why is there a lock-up period?

Accepted Answer

The lock-up protects both the company and other investors. It prevents large volumes of shares from hitting the market immediately after the IPO and pressuring the price. It also signals confidence in the company's long-term development.

Question 16

How does the lock-up protect the share price?

Accepted Answer

When many shares are sold at once, supply rises and the price can fall. The lock-up limits this selling volume in the first months and gives the market time to find a fair price without abrupt sell pressure.

Question 17

What happens after the lock-up expires?

Accepted Answer

After expiry, holders may sell freely. This can increase trading volume. Experienced investors watch this date as it can affect the price in the short term.

Question 18

What risks exist with IPOs?

Accepted Answer

IPOs can be highly volatile — both up and down. Long exchange history is often missing, valuation may be optimistic, and the lock-up restricts liquidity. Careful review of the company and issue price is essential.

Question 19

What is the subscription process?

Accepted Answer

In subscription, interested parties indicate how many shares they want at the issue price. After the subscription period, allocation takes place. If oversubscribed, many receive fewer shares than requested — or none.

Question 20

How does an IPO differ from OTC?

Accepted Answer

An IPO occurs through a regulated public listing with transparent pricing and strict disclosure requirements. OTC (Over-the-Counter) is off-exchange trading with different rules, structures, and often different lock-up terms.

Question 21

What does OTC mean?

Accepted Answer

OTC stands for Over-the-Counter and refers to trading securities outside a central exchange. Transactions are executed directly between buyer and seller — often via a market maker.

Question 22

How does OTC differ from exchange trading?

Accepted Answer

On regulated exchanges, prices are public and trading runs through central venues. In OTC, pricing is often bilateral, transparency may be lower, and access requirements differ.

Question 23

Which securities are traded OTC?

Accepted Answer

OTC includes certain shares of smaller companies, convertible bonds, derivatives, and other instruments not listed on major exchanges. Some international securities are also accessible via OTC markets.

Question 24

How does OTC trading work?

Accepted Answer

Buyer and seller — or their market makers — agree on price and quantity. Settlement runs through a clearing system. PeLu Invest guides you through this process and coordinates steps with involved partners.

Question 25

Are there lock-up periods in OTC?

Accepted Answer

Yes, lock-up periods can also apply in OTC — similar to IPOs. They serve the same purpose: price stability and protecting the company from abrupt sell pressure in the first months after placement.

Question 26

Why are lock-up periods important in OTC?

Accepted Answer

OTC markets often have lower liquidity than major exchanges. A lock-up prevents many investors selling at once and burdening an already thin market. It builds confidence and gives the company time to execute its strategy.

Question 27

What advantages does OTC offer?

Accepted Answer

OTC can provide access to companies not yet listed on a major exchange. The process can be more flexible, and qualified investors may participate early in interesting companies.

Question 28

What risks exist in OTC trading?

Accepted Answer

Lower liquidity, less transparency, wider spreads, and potentially lighter regulation are typical OTC risks. Thorough review of the issuer and contract terms is essential.

Question 29

Who can trade OTC securities?

Accepted Answer

Depending on instrument and jurisdiction, access restrictions may apply — e.g. for qualified or professional investors. PeLu Invest clarifies available options in a personal conversation.

Question 30

When is OTC a sensible option?

Accepted Answer

OTC may make sense when you are interested in a company not accessible via a classic IPO, or when the off-exchange route fits strategically. The decision should always be based on individual advice and careful review.

Question 31

What does PeLu Invest do?

Accepted Answer

PeLu Invest guides investors through the financial market — from the first idea through purchase to sale. We are neither a bank nor a broker, but your independent partner through processes, markets, and instruments.

Question 32

Is PeLu Invest a bank or broker?

Accepted Answer

No. PeLu Invest is neither a bank nor a licensed securities dealer. We provide advice and guidance. Actual transactions are executed through licensed partners and trading venues.

Question 33

How does collaboration work?

Accepted Answer

After an initial conversation we clarify your goals, experience, and options. Together we identify suitable instruments and guide you through the entire process — from analysis through purchase to eventual sale.

Question 34

What does support from purchase to sale mean?

Accepted Answer

We support you throughout the investment cycle: selection, execution, market monitoring, and timing of sale. You make the decisions — we provide expertise and coordination.

Question 35

How is compensation structured?

Accepted Answer

PeLu Invest works on a fee basis. After agreement and completion of the transaction, a fee arrangement applies. There are no hidden commissions or ongoing charges — terms are discussed transparently in advance.

Question 36

Is there a binding commitment to PeLu Invest?

Accepted Answer

No. There is no contractual binding or exclusivity. You freely decide whether and when to use our support. Each engagement stands on its own.

Question 37

Who is PeLu Invest suitable for?

Accepted Answer

For people interested in stocks, IPOs, or OTC investments who want professional guidance — whether experienced investors or beginners.

Question 38

Which markets and instruments are supported?

Accepted Answer

We guide you in stock investments, IPO participation, and OTC transactions. Specific access depends on your profile, jurisdiction, and available instruments.

Question 39

How does PeLu differ from classic brokers?

Accepted Answer

A broker executes your orders. PeLu Invest goes further: we advise, coordinate, and personally guide the entire process — without conflicts of interest from commission models.

Question 40

How do I start working with PeLu?

Accepted Answer

Contact us via our website or email. In a non-binding initial conversation we answer your questions and assess whether collaboration makes sense for both sides. This site provides key answers in advance.

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