Sat. Nov 23rd, 2024

Nowadays it is very common to hear about the share market among the people. They want to invest in the share market to help the business companies to grow and earn a profit, some of the shares of the profit will be distributed among the shareholders. With time there are two types of shares available in the market i.e listed and unlisted shares. Both can become a great source of returns if invested properly. The unlisted stock price or the listed stock price keeps on varying according to the situation of the business working.

If you are also interested in investing in the share market. It is really important to understand the difference between these two share types. The key points of differences are listed below:

  • The company that is listed in the stock exchange like BSE or NSE can trade in the listed shares that too openly in public. On the other hand, the unlisted companies of the share market deal with the unlisted shares that are not sold publically in the market.
  • The listed companies acquire several shareholders from the public. Rather the unlisted companies acquire the owners from the private investors like founders, the family of founders, peers, etc.
  • The listed shares are highly liquid in the market as they are always in high demand. But the unlisted shares are not that liquid as they are not openly sold in the market. Sometimes it becomes difficult in finding a buyer for them.
  • The valuation of the listed shares in the market can be easily done by simply determining the market value. But it is not that easy for the unlisted shares as their availability is not common in the public. Even the real picture of the financial status of the company is not revealed properly.
  • There are strict and complicated standards that have to be followed for dealing with the listed shares. On the other hand, the rules and regulations of dealing with the unlisted shares are not that complicated. All the rules are made according to the requirement of the company.

So these are some of the points that clearly state the difference between these two shares. You can invest in either of the share types according to the preference. There are a couple of ways to invest in unlisted shares. Let’s have a look at them.

  • Buy from the employees: If you are interested in buying the unlisted shares, you can easily buy from the existing employees. The employees of the company are offered shares as soon as they join the company. So if the employee wants to sell them, he can and the interested person can purchase from them.
  • Buy from PMS or AIFs: There are some of the financial companies that are managing the portfolio management services and alternative investment funds do buy the unlisted shares from the company. You can buy from them before the shares are offered in public.

So if you the person that wants to earn more money, you can invest in the unlisted shares. For this, you can contact any of the unlisted shares brokers.

 

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