The list of shares of unlisted companies that are ‘not yet’ listed on any of the stock exchanges to be traded is unlisted shares. Investment in unlisted shares is lucrative and risky as well. Interested investors can buy the shares at lower prices and thus reap higher profits before their issuance to the public.
The risk factor steps in when the investors have no transparent financial status of the unlisted companies while the listed companies have the details available on the public domains. If you are likely to invest in unlisted company shares, buy unlisted shares online from Unlisted Assets.
Reasons to engage in the trading of unlisted shares
There are common advantages for investors to invest in unlisted shares.
The unlisted equity shares aren’t priced as per their value in the market. Since the unlisted shares are not liquid in the trading market, overvaluation and undervaluation are what these shares are worth.
Thus, if an investor gets an opportunity to invest when the shares are undervalued, then the investors gain significant returns on the investment when its prices hike up.
Unlisted equity shares are a completely different trading asset for both the investors and the traders. The investors who are majorly indulged in the trading of listed equity shares encounter diversified risks.
Significant return on investments
Most often, the companies at the initial stages or the unlisted companies are smaller in size and have the potential to reach its maximized profitable stage yet. On public issuance of their shares, companies consolidate enough funds for their capital requirements.
As a result, investors make significant profits with the growth of the companies when listed on the equity markets. The small base effect helps them to yield higher returns on investment.
The prices of listed equity shares fluctuate frequently. On the contrary, the unlisted equity shares are traded on relatively stable market prices.
Taxation on the gains of unlisted shares
Selling equity shares would either result in capital gain or loss that is further classified in short and long-term gains for taxation purposes.
The selling of shares within two years from the investment date is considered as a short-term tax calculation. While the short-term loss is adjusted against long and short-term gains taxed as per the tax slab of the investor.
2. Long-term gain/loss
Long-term shares are sold after 2 years from the date of investment. The long-term loss may be adjusted against long-term gains, while after indexation, there is 20% taxation on long-term gains.
Based on the shares held for a specific duration by the investors, the profits from the unlisted shares are listed for 2 years, it is categorized as long term else short term.
To invest your money in the potential shares, Unlisted Assets provides NSE share price unlisted that help you choose from the shares. Unlisted shares help you reap higher ROI (return on investment). Dealing in safe escrow banking management, Unlisted Assets keeps your funds’ transactions secured and in the profitable range.
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