Can an Unlisted Company Raise Capital?

Picture shows gold coins symbolising raising capital

Actual Question:

Can a public Ltd. company raise capital by issuing shares at the beginning without listing on any stock exchange?

Answer:

Dear Friend

Yes, raising capital by issue of shares and listing are two completely different things. I do not wish to get into technicalities, but certainly a public limited company can raise capital by issue shares without being listed on the stock exchange.

Listing on the stock exchanges simply lends liquidity to the shares - meaning investors will be able sell the shares at any time.

I read just now that the central government is proposing to list the following five public sector general insurance companies soon:

• General Insurance Corporation of India

• National Insurance Co. Ltd.

• Oriental Insurance Co. Ltd.

• New India Assurance Co. Ltd.

• United India Insurance Co. Ltd.

All the above five are public limited companies having raised share capital but as on date unlisted.

In conclusion, yes unlisted companies can certainly raise capital by issuing shares.

Thank you,

With Best Regards

Anand

Can I Invest with a Six Days a Week Job?

Value investor nurturing plant of investment

Actual Question:

Is it possible to invest in stock market through Zerodha if I have 6 days a week job?

Answer:

Dear Friend!

To me it appears that you want to know whether it is possible to make regular investments having six days a week job.

The answer is a definite yes.

Provided we have a clear understanding of the meaning of the word investing.

Day-trading/ intra-day trading/ margin trading is not investing. In case your query is related to trading in stocks, I say that it is extremely difficult to handle with six days a week job. I go one step further and caution you not to ever indulge in trading either in stocks, commodities or currencies. It is highly risky, dangerous and speculative activity.

Day trader transacting on electronic platform

In case you are referring to investing in the real sense, that is with an intention of buying securities to take delivery, holding them for a very, very long time, it is very much possible. I do it. Thousands of value investors do it allover the world. You can even place after market orders in the night or early morning, which will get automatically executed during, market hours.

Thank you,

With Best Regards

Anand

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