A brief guide on the Share market – Unlisted share price
Unlisted shares are those of a company that is not listed on NSE/BSE( National stock exchange/Bombay stock exchange), and these shares are traded over the counter (OTC) and are further called OTC securities. The unlisted shares of a company take their first step in an IPO, i.e., the pre-IPO stage, which provides an excellent investment opportunity to the traders and mainly focuses on long-term wealth creation. It may be possible that their returns can potentially beat returns by listed equities, or it may be possible that it cannot beat the listed equities because rather than demand and sell, the company’s shares depend on various factors. Allotment in IPO has some unlistedshare price. Their price depends on supply and demand, companies’ latest transactions, the last funding round of the company, and the valuation level of other companies; having similar sizes affect the pricing of the unlisted shares.
Unlisted shares trading is generally done
on the stock exchange platform; there are generally various applications
available in the market for trading in listed share equity or unlisted share
equity. But An unlisted company share has a high amount of risk. It will have
the potential to give unexpected returns or not, whether it has liquidity or
not, whether the product of the market has any demand in the market or not, and
whether the shares of the company have demand for buying or not.
How to invest in unlisted shares
If the company is actively raising funds, then the investor can directly
contact or approach the company
If the person has to invest in an unlisted share, they have to make an
ID in a platform that deals with a stock exchange. Then after making an id,
they have to apply for the LOT they want in that company, and one lot includes
65 shares in an IPO.
Allotment of a lot is just like ludo, i.e., a platform where your luck
is everything.
After listing the company shares, It may be possible that you may not
get an allotment, but you can buy that share on that platform on his trading
day.
Advantages of unlisted share
● Unlisted share price
The price of every unlisted share in a company's IPO is always lower
than when it is listed. sometimes it may be possible that after its listing,
the price of a share may decrease, and the unlisted price becomes more than the
listed price, but these types of things vary from company to company
● Investors interest
Generally, when an IPO comes,every investor invests their money for profit return. The investor is like the grasshopper, jumping from one stock to another stock after taking some amount of return. And there is some person who invests their money for a longer duration for a good return.
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