Unlisted shares

Discussion in 'Share Investing Strategies, Theories & Education' started by ETREUS2K8, 9th Sep, 2008.

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  1. ETREUS2K8

    ETREUS2K8 New Member

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    1st Jul, 2015
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    Location:
    Blue Mountains, NSW
    Hi everyone,

    I am a rooky attempting to get into the share market. I am interested in a company releasing some listed and unlisted shares at the end of the month, but not sure how "Unlisted" commodities work. They caught my eye because they'll be releasing them for about 60% cheaper than the listed shares.

    Any opinion will be of great help.

    Thanks
     
    Last edited by a moderator: 9th Sep, 2008
    ETREUS2K8, 9th Sep, 2008
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Location:
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    First up shares are not the same as commodities.

    Secondly, unlisted shares are an illiquid investment which does not necessarily have a ready market for trading them after purchase - you essentially have to find someone willing to trade with you and negotiate directly with them ... the transfer is simple, just some paperwork - but you can't be sure you will actually find someone who wants to buy/sell.

    You need to look at the details of the offer. Why are the unlisted share cheaper? Do they have the same voting rights? Do they have the same rights to dividends? It may turn out that they are in effect worth 60% less than the listed shares - hence the discount.

    Be very cautious of unlisted shares.
     
    Simon Hampel, 9th Sep, 2008
    #2
  3. Nigel Ward

    Nigel Ward Well-Known Member

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    Opinion - noting the above investing in illiquid shares is not for you.

    The terminology you've used indicates to me that you probably don't know what short of due diligence investigations you would need to make to make an informed judgment of the potential risk and return from a private equity style investment.

    That's okay though - you can get plenty rich enough by just investing in boring listed shares and direct property.

    Good luck with it.

    Cheers
    N.
     
    Nigel Ward, 9th Sep, 2008
    #3
  4. ETREUS2K8

    ETREUS2K8 New Member

    Joined:
    1st Jul, 2015
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    Location:
    Blue Mountains, NSW
    Thankyou both for your opinions and advice. Like I said I am a rooky and meant securities not commodities.
    I thought unlisted shares would be too much to start with but I thought I'd start by asking.

    Thankyou again,

    Martin
     
    Last edited by a moderator: 11th Sep, 2008
    ETREUS2K8, 10th Sep, 2008
    #4
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    I think that's always a very good strategy - ask lots and learn lots!
     
    Simon Hampel, 10th Sep, 2008
    #5
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