Watch out for dodgy IPOs
Imminent listing? As you know, investing in private companies can be profitable; especially when they are on the rise. On obtaining a public listing on markets such as AIM, share prices can go through the roof. So if you’re offered the chance to “get in early”, you’d probably snap it up. Various “brokers” have been touting shares in companies registered in the UK on the basis of an opportunity to profit from a forthcoming Initial Public Offering (IPO).
Bit dodgy. Of course such “listings” don’t actually materialise and the companies concerned fail to file accounts. After due process, Companies House strikes them off and shareholders are left holding wallpaper instead of share certificates.
Land ahoy! One favourite ploy has been to offer shares in “land banking”; until recently everyone wanted a piece of the property action. Now that even major builders have suspended the purchase of land, the scams will adopt other guises.
Tip. Check the public register at Companies House of any company’s shares you are touted. Even if they exist they are hardly on solid ground if they have never filed accounts or are about to be dissolved.
Create your profile to unlock this advice and many more.