Step by step
Buying unlisted shares differs from trading on an exchange. Here's the process in brief.
1. Find opportunities
The first step is finding companies offering shares. You can do this via:
- Specialized platforms like Accumeo, where you can search among unlisted companies.
- Brokers focused on secondary trading.
- Direct contact with the company's board or existing shareholders.
2. Evaluate the company
Before investing, you should do thorough analysis:
- Review the company's financial reports.
- Understand the business model and market.
- Check previous funding rounds and valuations.
- Assess the team and management.
3. Negotiate and agree
Unlike exchange trading, the price is often negotiated directly. Factors affecting price include latest valuation, company growth, and share liquidity.
4. Execute the transfer
Once you've agreed on price and terms, a share transfer occurs. This means the share is formally transferred to you in the company's share register.
5. Confirmation
You should receive confirmation that the share transfer has been registered. Verify that you appear in the share register.
Summary
Buying unlisted shares requires more effort than exchange trading, but platforms like Accumeo simplify the process significantly.