amit@unlistedkraft.in
+91-8796470040
+91-8796470040
Here is an explanation of the video from UnlistedKraft regarding why unlisted share prices vary across different brokers and how the market works:
1. Why Are Unlisted Share Prices Different?
- No Centralized Exchange: Unlike normal listed shares, unlisted shares do not have a single live exchange or fixed price.
- Over-the-Counter (OTC) Market: The market operates over-the-counter, where different platforms and dealers negotiate prices independently based on demand, supply, company performance, IPO hype, and their own profit margins. Seeing a price difference (e.g., ₹500 on one platform vs. ₹550 on another) is not necessarily a scam.
2. The Real Game: Bid-Ask Spread
- The Spread Gap: If a platform sells a share to you at ₹550, they might buy it from another investor who is selling at around ₹480.
- Liquidity Warning: The gap between the buying and selling price is called the Bid-Ask Spread. A very high spread indicates low liquidity in the market, meaning you might face trouble or heavy costs when trying to cash out your investment later.
3. Essential Checks Before Investing
Before investing in pre-IPO or unlisted shares, the speaker recommends checking three key things:
- Compare Prices: Check the buy and sell prices across multiple platforms.
- Verify Valuation: Review the company's official valuation reports.
- Check Regulatory Status: Ensure the platform is authorized, as SEBI warns against trading through unauthorized platforms.
