A brief guide on the Share market – Unlisted share price

 

The share market, which includes listed shares and unlisted shares, has power, making a poorer person rich and the wealthiest person poor. If a person has a share of a company, they have a unit of ownership of the particular company.

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.