How to Find Best Unlisted Companies?

Honestly speaking, this is a very tough thing. Because the financial statements and quarterly financial results of the unlisted companies are almost impossible to get. Because according to the laws, they are not required to disclose their financial statements to the public like listed companies.

Many people buy the stocks of unlisted companies in India. But most of the time they suffer a financial loss. I know several people who are holding the shares of unlisted companies since several years, hoping that one day these companies will be listed on the stock exchange and they will get back their investments. But unfortunately, that day never comes.

In countries like USA, not the everyone can invest in unlisted companies. Only Accredited Investors means whose net worth is well above $ 1 Million can legally invest in such kind of deals. However, because of lack of such kind of regulations in India, people who are not financially intelligent also enter into this market.

Buying shares of unknown unlisted companies from the stock brokers is a very common practice in India. But it is not allowed in USA. You have to be informed and sophisticated investor to buy shares if Unlisted companies in USA.

Thus, What I advise to all of you is that, this is the Investment for Sophisticated Investors who analyze the financial statements before investing. And if you are not a sophisticated investor than this Investment is not for you. Because it is Risky.