What Is Unlisted Shares: Benefits and Risks Explained Clearly
Unlisted shares are equity shares of a company that are not traded on a stock exchange. These shares offer unique investment opportunities but also come with certain risks. Understanding them is crucial before making investment decisions.
Key Benefits of Unlisted Shares:
Potential for high returns if the company grows rapidly
Access to early-stage investment opportunities in startups
Diversification of your investment portfolio
Possibility of acquiring shares at a lower price before listing benefits of unlisted share investing
Risks to Consider:
Limited liquidity as shares cannot be easily sold
Lack of transparent pricing and market information
Higher risk of business failure compared to established listed companies
Investing in unlisted shares requires careful research, risk assessment, and long-term vision to maximise potential gains while mitigating losses.