Is it safe to buy shares with new companies

Mandy96

Valued Contributor
As a new business organization in town, they are always all about satisfying people in order to attract customers and during those period of time, most companies usually don’t mind embracing some loss just for the sake of the brand to gain its stand. It has always been the business strategy used by most brands and to be candid, it usually does work.
Although, not all new businesses are always ready to allow people to buy shares with them while they are still struggling to become on of the top notch but be it as it may, some still space out a chance for it and these are the ones we are actually directing the topic to. For example, a new company just landed in the city and fortunately for them, they were able to be known and people started patronizing them and even buying their products, the amount of sales they are making during those times will be high in market and this would attract some business minded people to want to buy shares with such company, and I have been wondering, what if such brand eventually crashes due to lack of experience in the market. Is it safe to actually invest one’s money in such establishment?
 

Immilash

Active member
As a new business organization in town, they are always all about satisfying people in order to attract customers and during those period of time, most companies usually don’t mind embracing some loss just for the sake of the brand to gain its stand. It has always been the business strategy used by most brands and to be candid, it usually does work.
Although, not all new businesses are always ready to allow people to buy shares with them while they are still struggling to become on of the top notch but be it as it may, some still space out a chance for it and these are the ones we are actually directing the topic to. For example, a new company just landed in the city and fortunately for them, they were able to be known and people started patronizing them and even buying their products, the amount of sales they are making during those times will be high in market and this would attract some business minded people to want to buy shares with such company, and I have been wondering, what if such brand eventually crashes due to lack of experience in the market. Is it safe to actually invest one’s money in such establishment?
It will he a great idea to buy shares in a new company but it's sometimes risky, is risky in the sense that the company might disappear or runaway especially if it is online.
 

Victorial

Active member
It's a calculated risk and such kind of risk can go sideways. Since the company's products are in demand by the general public, the level of risks has reduced a bit and the chances of closure will be minimal. With that said, it is a great call to invest in such an investment. But keep your eyes on the watch out in case you see any activity that will diminish the company's reputation as this will affect the company's sales.
 

Nicholas

New member
I agree it's risky. But sometimes you just have to a chance to see what happens, it mite be to invest or it could be free. but it's up to the individual to take the chance.
 

Jasmine

VIP Contributor
It is perfectly safe to buy shares in a new company. In fact buying shares in a new company can be more profitable than investing in old companies. That's because most of the old companies have reached saturation level where as small and newer companies have a lot of rooms for growth. Any random company does not just get listed in the share market, it has to fulfill certain criteria and get approval from security exchange board, they will approve only when the company is showing good performance. The security board makes sure that the investors money will be safe.
 

Sotherefore

VIP Contributor
Well since I don't really know much about stock investment ,I will try as much as possible to answer this question based on cryptocurrency aspect. if we are to apply it here, first of all to be on the safer side it will be the best for you to do your own proper research about the particular company and you are investing on and they must have something tangible to offer before you can invest in new company ,and it is very much safer for you to go for companies that has been established already because there is little possibility of scam or fraudulent activities.. sometimes in cryptocurrency I am always so sceptical to invest in new projects.
 

greenieS

Verified member
It is risky to invest in a new company but in the end, you have to give others a chance to see what they can :) you can't just invest in big companies. Indeed, it can be risky ... you invest and the company disappears overnight and you are left with lost money, you can't get it back. What are you doing then?
 
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