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What are unquoted shares

what are unquoted shares

It is important you read, understand and acknowledge these notes.

An investment in an Enterprise Investment Scheme (EIS) is an investment in a single company (often unquoted) and should be considered high risk and illiquid. There is normally no mechanism via which individual investors can sell unquoted EIS shares.

A brief summary detailing the primary risks of investing in EIS:

  • The failure rate of EIS companies is typically much higher than that of larger companies. There is a risk you may lose the entire value of your investment (although losses are allowable for tax purposes).

  • Generally there is no liquidity in EIS companies. EIS are usually investments in individual unquoted companies. Shareholders are normally locked into the investment with no means to dispose of the shares. until the company

    directors achieve an exit (e.g. quoted market flotation, trade sale or share buy-back).

  • Shareholders must retain EIS investments for at least three years. If shares are sold within this period, the initial income tax relief will be required to be repaid.
  • Always read the ‘Risk Warning’ notices included in EIS prospectuses and marketing documentation.
  • Past performance is not and never should be used as a guide to future performance. The value of your investment may go down as well as up.

    Allenbridge Limited is an appointed representative of ValidPath Ltd which is authorised and regulated by the Financial Services Authority under Firm Reference Number 197107. The Allenbridge website is intended for use by UK investors only and the investments referred are available only in the UK.

    Category: Forex

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