Showing posts with label listed companies. Show all posts
Showing posts with label listed companies. Show all posts

Tuesday 2 February 2010

Listed and Unlisted companies.

You can hold shares in companies that are
  • listed on the stock market or
  • in unlisted companies. 
The bulk of equity investments are in listed shares. 
  • Companies list on a stock exchange in order to gain access to more capital, and
  • they must comply with stringent criteria set by the stock exchange to protect investors.

Be very careful when you invest in unlisted shares. 
  • Unlike the listed companies, the unlisted companies are not scrutinised that closely. 
  • Shares in unlisted companies therefore carry a bigger risk and
  • are also much more difficult to sell as there is no open market.