Understanding the Value of Your Shares Purchased Through Birchal
When you invest in a company through Birchal's Crowd-Sourced Funding (CSF) offers, you are purchasing shares in unlisted companies. These shares are not traded on public exchanges like the ASX, which can make determining their value and liquidity more complex. Below, we provide an overview of share valuation, challenges, and steps to access your share information.
Overview of Share Valuation for Unlisted Companies
Shares purchased through CSF offers represent ownership in unlisted companies. Unlike publicly traded shares, these are not subject to daily market fluctuations and are typically valued based on the purchase price at the time of investment. Unless new valuation information becomes available, the purchase price is often used as a reference point for their worth.
Challenges in Valuing Shares
Valuing shares in unlisted companies can be challenging due to the lack of a public trading market. The value of these shares may only change if the company undergoes a new valuation event, such as a subsequent funding round or acquisition. Investors should be prepared for the possibility that these shares may not have immediate liquidity or a readily available market price.
Steps to Access Your Share Information
To access your share certificates and related information, you will typically need to use the share registry platform nominated by the company. For example, many companies use platforms like Cake Equity. Upon issuance of your shares, you should receive an email with instructions to register for an online account and access your share certificate. If you cannot locate this email, check your spam or junk folder. If further assistance is needed, contact the share registry platform directly through their website or support channels.
Long-term Investment Considerations
Investments in unlisted companies are generally medium- to long-term commitments. These companies are often in early-stage or high-growth phases, aiming for long-term goals. While there may be opportunities for returns in the future, such as through dividends, buybacks, or eventual public listing, these outcomes are not guaranteed. Investors should consider these factors when evaluating their investment.
Additional Resources and Support
For more detailed guidance on share valuation and next steps after investing, refer to the following resources:
If you have further questions or need assistance, contact the share registry platform or Birchal's support team for help.