The shares, also known as equity, are the legal ownership of a company.\u00a0 When you invest in Unlisted Shares, you\u2019re buying the rights to invest in the future financial performance of a company through its share price.<\/p>\n
Unlisted shares are shares that are not listed on any stock exchange. They\u2019re sold directly to investors by the company and not traded on any stock exchange. This makes them a more difficult investment than listed shares. Unlisted shares don\u2019t have any official price tag (the price of an unlisted share is determined by supply and demand). But they can still be bought or sold at a certain price if you know what you\u2019re doing. The first step in buying unlisted shares is finding out who owns them! This will help determine whether there\u2019s enough liquidity for your purchase and if so, how much it\u2019ll cost.<\/p>\n
IPO:<\/strong> An\u00a0Initial Public Offering<\/a>\u00a0is a public offering of shares to the general public.<\/p>\n Unlisted Shares:<\/strong> These are not offered to the general public, but they can be bought and sold through a brokerage. Unlike IPOs<\/a>, which are regulated by SEBI (Securities & Exchange Board of India), unlisted share transactions don\u2019t require any approvals from regulatory bodies such as SEBI or NSE (National Stock Exchange).<\/p>\n Investing in unlisted shares is one of the best options for investors. The reason behind this is that you get to be an early investor, which means there are higher chances of possible returns and less stock market uncertainty. Also, since these shares do not have any listing in any exchange or the stock market, you can buy them at a discounted rate.<\/p>\n The main advantage of investing in unlisted shares<\/a> is that they offer better returns compared to other instruments like Government Securities (GS), debt securities, etc. because these instruments have been issued by companies that are already listed on either BSE or NSE but not traded openly on these exchanges as well as there may be some issues related to liquidity. These issues may include a lack of information about the valuation process if any; lack of disclosure about certain aspects relating share price movements etc., which results in differentials between quoted prices at various times depending upon whether they\u2019ve been liquidated or not.<\/p>\n You may have heard of the term \u201cgoing private\u201d. This simply means that a company has decided to take itself out of the public eye by becoming privately owned, rather than publicly traded on a stock exchange. The reasons why companies go private vary from one industry to another but there are some commonalities:<\/p>\n \u25cf They want to avoid scrutiny from investors, regulators, and other stakeholders in their business. Investing in unlisted shares is not a simple process. You need to know the market, the company, and its prospects before you can invest in it. You can purchase them from an existing broker such as Goodwill Wealth Management. Investment brokers are the middlemen between investors and companies, who help you find out about a company, as well as purchase or sell shares in it. Some of these brokers will also act as registered stockbrokers (RSB), meaning they have been approved by SEBI. Get access to the lowest brokerage charges in India with Goodwill when you invest.<\/p>\n Before investing in unlisted shares, you should know that it\u2019s not a sure-shot way to make money. There are several risks involved with investing in unlisted companies. One risk is that the company may go bankrupt and lose all your money. Another risk is if a company goes bankrupt, then it may be hard for you to get your money back because there will be no liquidation process available to recover any losses suffered by investors during the event of insolvency (when a company becomes insolvent). Other important things to remember before making an investment decision on whether to invest in an unlisted share include:<\/p>\n \u25cf Keep track of how well they perform financially as they accumulate more capital inflows from shareholders who have bought into their business model;<\/p>\n \u25cf Understand what makes them unique compared with other companies operating within their industry segment (for example, if they\u2019re trying something different);<\/p>\n \u25cf Check management team credentials such as education levels\/experience levels along with experience working within relevant industries locally or internationally;<\/p>\n \u25cf Check financial statements covering annual profits made over 3 years \u2013 4 years<\/p>\n It is important to find a reputed broker who understands the risks and rewards of investing in unlisted shares. You should look for a broker who has experience in this area, as well as someone you can trust. If you are interested in learning about Unlisted Shares and investing, then Goodwill is the one for you.<\/p>\n They are one of the\u00a0best equity brokers in India<\/a>. Get\u00a0free Trading and Demat Account opening<\/a>\u00a0in less than 10 minutes. You will receive on-time support and free training with webinars. Register today and start investing the same day! So why wait? Contact Goodwill and one of the executives will get in touch with you shortly.<\/p>\n <\/p>\n <\/p>\n The Techniques of Pricing IPOs<\/a><\/strong><\/p>\n What are IPOs? How do they work?<\/a><\/strong><\/p>\n How Does a Company Create New Shares During an IPO?<\/a><\/strong><\/p>\n How to Invest in IPO Online? What are the Benefits of IPO?<\/a><\/strong><\/p>\n What Are Pre-IPO Shares? How to Invest in Pre-IPO Shares in India?<\/a><\/strong><\/p>\nAdvantages of investing in Unlisted Shares<\/strong><\/h4>\n
Why does a company go private?<\/strong><\/h4>\n
\n\u25cf They want to ensure they can focus on growing revenue without worrying about having their activities scrutinized by the media or competitors.<\/p>\nHow to invest in unlisted shares?<\/strong><\/h4>\n
Important points to remember before investing in unlisted shares<\/strong><\/h4>\n
Know where to look and invest carefully<\/strong><\/h4>\n
To get more insights about IPOs, read our blogs:\u00a0\u00a0<\/strong><\/h5>\n