Unlisted Shares: High On Demand, Know Why!

Unlisted Shares: High On Demand, Know Why!

The stock exchange facilitates the trading of high-quality shares. NSE (National Securities Exchange) and BSE (Bombay Stock Exchange) allows trading of listed securities such as shares, debentures, or any other securities. 

The private companies get listed on the exchange and increase the values of their shares. Listing refers to the process of admitting securities of a company on any of the stock exchanges. Under the companies act 2013/1956, the listing is not a compulsion. Only if a public limited company wants to issue its shares to the public then it becomes necessary to get listed. The listed companies have to comply with the rules and requirements of the stock exchange while unlisted company shares are traded independently by the money-makers. 

Listing of the companies provides a privilege to securities. The stock exchange quotes only the listed shares. Regulating under SEBI (Stock Exchange Board of India), the stock exchange enables transparency in transactions of listed securities and equality and competitive conditions. Listing of the companies is largely beneficial for the companies, investors, and the public.   

Unlisted Shares

Stock exchange filters shares to get listed. Hence, the shares of the companies which are not listed on the stock exchange are unlisted shares. These are often referred to as OTC (over-the-counter) markets. The shareholders of unlisted shares are deprived of the benefits as provided in the stock exchanges. 

Advantages of unlisted shares that investors should not skip

  • Valued investments

The unlisted stocks are not liquid and are not valued correctly. They are either undervalued or overvalued. One of the greatest benefits that unlisted shares investment provides is that investors can reap higher profits at cheaper shares prices. Thus, if investors invest when the stock is undervalued, their investments can grow exponentially.  

  • Peaceful market monitoring

Unlike listed equity shares, the prices of unlisted equity shares are registered under stable conditions. Despite continuous fluctuations, investors are indulged in trading of listed shares. Whereas, the unlisted market is steady and the investors can enjoy hassle-free trading. 

  • Funds growth 

The unlisted firms are often smaller in size and predictably can reach at any stage when they decide to issue shares publicly to meet their capital requirements. As a result, investing during the initial stage of a privately held company, investors capably gain profits with the growth of the company. 

  • Risk diversification

Unlisted equity shares are a variable asset class that brings risk diversification for the investors majorly active in listed equity markets. Instead of investing a large amount in a particular share, segment your funds and invest in multiple shares to make the most of unlisted shares’ trading. 

Although unlisted shares’ trading is profitable enough to grow your assets, it is surrounded by various risk factors. The long-term capital gain tax for unlisted securities is 20%. Moreover, the invested funds are not liquid and cannot be considered emergency funds. Among all the difficulties, Unlisted Assets allows easy trading of the unlisted shares. At www.unlistedassets.com  the investors can buy unlisted shares online and rely on the assured capital gain in the long term.