Unlisted shares can offer early opportunities, but investors should understand liquidity, pricing transparency, and lock-in periods before investing.
Hey @Arjun_Bhatt,
Welcome to the community!
That’s correct. Investing in unlisted shares before an IPO can carry significant risks. These include issues with documentation and compliance, which can affect income tax filing. While there’s potential for solid returns if the company performs well post-IPO, success is not guaranteed, and the shares may lack liquidity until listed.
Investing in unlisted shares before an IPO may bring high returns, but risks like low liquidity and uncertain valuations require careful research.
While unlisted shares can offer high returns, there are risks associated with them, such as low liquidity, limited transparency and uncertainty about valuation. Make sure you research thoroughly and seek expert advice before investing.