Private equity Flashcards

1
Q

What are the complications and benefits of investing in single unlisted shares?

A

the risks associated in investing in a single,
unlisted, company are higher than investing in shares of a larger company listed on the stock exchange. This said, the returns can be higher too. Again, if you consider Dragon’s Den, the investors often demand a
significant shareholding in the company in return for their investment. Equally, shares in these companies have the potential to grow faster than listed shares since much a company’s growth will come in its infancy.
Of course, it is hard to pick the ‘right’ companies.

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A
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