NewConnect is an alternative system of shares’ trading operated by Warsaw Stock Exchange (Giełda Papierów Wartościowych w Warszawie S.A. - GPW). The main aim of NewConnect is to create a trading platform through which small and medium-sized enterprises could apply for financing allowing for the execution of an investment project enabling them further and more dynamic development. NewConnect market is often an intermediate stage which allow issuers to collect necessary experience and improve their recognition, based on which a debut on the regulated market is more effective.
The provisions that regulate functioning of NewConnect are more simplified than those concerning trading rules of the regulated market. Given the above, introducing financial instruments to alternative system of trading is connected with necessity of carrying out a simplified and significantly less expensive procedure than applying for a debut on the regulated market. Moreover, organizational rules of NewConnect being in force are significantly less strict, therefore participation of issuers in that system does not bring about the need to bear so severe organizational burdens.