iPhone locates my network but can't find server

[oldschool]

I'm a recent mac convert and maybe I'm just retarded but I don't understand my system. I have an Imac that is sending a wifi signal to my iPhone ( I do not have a wireless external router). I don't even understand how my Imac is sending out the signal. Does it have an internal router? Anyone my iPhone connects to my network but give me an error message that it cannot find server.

Can somebody please make sense of this for me?

 

[skiz420]

i believe you can only share files over that network so it would be useless for the iPhone seeing how we don't have a file explorer.... im not a mac expert by any means so i may be wrong but on windows you can set up a wireless network for file sharing but not internet acess