An organization grows funds for its development and establishment. The process to raise the funds results in the equity share capital. To become a publicly traded company, it has to register itself on the stock exchange list. BSE (Bombay stock exchange)/NSE (National stock exchange) being the oldest and biggest stock exchange market updates the equity share capital of the company and it is traded across the retailers and investors.
Equity share capital is also constituted by unlisted shares. Before the company launches its IPO, the unlisted shares are issued first, and hence, they are also termed as pre-IPO shares. These are not listed on stock exchanges, so you will always have to invest in unlisted company shares through unconventional means.
Buying unlisted shares
Some start-ups are only created for investments in unlisted shares. By opening a Demat account with them, you can start investing in these shares with a minimum of Rs. 50,000. You cannot trade without depositing money but the delivery of the amount is not guaranteed in these kinds of trading.
- From the company employees
A few start-ups offer ESOPs (Employee Stock Ownership Plans) to their employees who allow them to own equity shares in the company and they can buy company shares at pre-defined prices.
You can buy their unlisted shares through a broker who knows the number of shares on sale and help you get it.
- Through investment in PMS or AIF
If you want to exceed your investment range and are a big investor and thinking to invest an adequate sum in PMS (Portfolio Management Services) or AIF (Alternative Investment Funds), we can get you unlisted shares.
Unlisted shares are usually traded among financial institutions that manage a PMS or AIF scheme.
Unlisted shares – Crazy attraction for investors
- The companies that use creative ideas to increase revenue margin can later become established gamers and unlisted shares are offered by such companies only who are in the beginner stage towards development.
- If an unlisted shareholder company is a subsidiary of reputed and renowned companies, the investors anticipate their great revenue return.
The investors bank upon the subsidiaries. Seeing the parental company coordination, they invest in unlisted shares.
So, investors choose unlisted shares for investing in innovative ideas or potential businesses.
The Unlisted Securities Market was a stock exchange created to cater to those small companies who couldn’t make it to the stock exchange listing. Unlisted security is called a financial instrument and not traded on any of the stock exchanges, but traded through the over-the-counter (OTC) market. When you invest in unlisted shares, there are chances you might not find them liquid as they aren’t publicly traded. The money makers ease off the buying and selling of unlisted securities in the OTC market.
Investing in unlisted shares through unlisted assets
Unlisted assets allow you to invest in unlisted shares of various organizations. Our platform guides you through the simple steps of buying unlisted shares online. Unlisted assets follow secured procedures and offer safe solutions for a better investment.
