If you are new in the field of babli investment, you must be wondering what exactly are unlisted shares? It is a type of share that has been set aside for sale by companies that are unknown to the general public but have put up a website. For the investors, they are able to invest in unlisted companies at a very high price as compared to the listed ones. The only negative about such stocks is that the price might go much lower than the listed ones within just a matter of time and so you should be careful while buying these shares.
Investing in Unlisted Stocks
Before you can buy unlisted shares, you should be well versed with the terms like msmes, pips, penny, debentures and demat account. As mentioned above, unlisted companies are not registered with any corporate tax or exchange. As a matter of fact, they are classified as’Privately held Companies’ and they are not subjected to any of the corporate tax laws. Investors can buy and sell these shares according to their requirements at the market value prevailing at any given time. However, before you invest in these shares, you should make sure that you are aware of all the share trading basics. You should learn about the working of the various corporate tax laws, the share market and also the rules and regulations related to trading of this kind of share.
In addition to that, if you have decided to invest in Unlisted stocks, you must know that unlike the listed stocks, there are several other formalities that are involved in the process of dealing with these shares. First of all, it is essential to get the approval of the share exchange or the pink sheet before buying or selling these shares. Secondly, it is important to understand the rules of the company before you decide to place your share order to the stock exchange.