Risks of Buying Unlisted Shares and How to Avoid Them
Buying unlisted shares can present both opportunities and risks. Unlisted shares refer to shares of a company that are not traded on a public stock exchange. Here are some risks associated with buying unlisted shares and ways to mitigate them.
| Risks | How to Avoid | How Altius Investech Helps |
|---|---|---|
| LACK OF LIQUIDITY | Invest only funds you can lock away for a while. Research exit options like private sales or buyback offers. | Altius Investech provides a platform for selling shares, enhancing liquidity and facilitating potential exits. |
| LIMITED TRANSPARENCY | Conduct thorough due diligence. Review financial statements, understand the business model, assess growth prospects. | Altius Investech offers comprehensive research resources, including blogs, overviews, and insights, aiding informed decisions despite limited transparency. |
| VALUATION RISK | Seek professional advice for assessing fair value. Consider financial performance, growth potential, industry comparisons. | Altius Investech’s experienced analysts offer valuation expertise, leveraging 25 years of industry experience for accurate assessments. |
| BUSINESS RISK | Evaluate the company’s business model, competitive advantages, management team, and industry dynamics. | Altius Investech’s execution excellence and legal expertise navigate potential business risks, ensuring investor confidence. |
Important Note– Please note that the lock-in period for selling unlisted shares is six months after listing. Hence you cannot sell an unlisted share that you bought in Pre-IPO for six months after its listing.
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To know more about Unlisted Company. Click here – https://altiusinvestech.com/blog/what-is-listed-and-unlisted-company
You can also check out the list of Best 5 Unlisted Shares to Buy in India.
To buy unlisted shares of any company. Click here – https://altiusinvestech.com/companymain
To know more about How to sell Unlisted Shares. Click and read here –