What you need to know about investing in the private placement market

Have you ever thought you might perk up your investment portfolio by putting money into real estate securities, an early-stage mining venture, or a start-up company that a friend or family member is trying to launch? 

If so, then you’re thinking about taking on more risk by investing in the private placement market. Both public and private businesses in BC raise a significant amount of money in this market, which makes it an important driver of economic growth and job creation. The vast majority of those using it are investment funds and public companies. But the smaller percentage that are start-up businesses pose a high risk to retail investors.

 
Now there’s a down-to-earth guide to help you understand those risks and if they’re suitable for you.

The new Guide to Investing: the private placement market for retail investors PDF document is free from InvestRight. It explains how the private placement market works, who can invest in it, and what to watch out for. It can help you manage the risks if you decide to invest and save you from possibly taking on more risk than you can afford.

Investing in the private placement market isn’t for everyone. Investors must qualify under strict guidelines. They also have to take on the responsibility for meticulously researching any opportunity they’re considering and carefully weigh the reasons not to invest along with the reasons to invest.

The Guide has plenty of food for thought for would-be investors in this market. Here’s just a taste.

Start-up businesses and other alternative investment types offered in the private placement market often appear attractive because they promise returns that are typically higher than those available in the public securities market. But watch out:
1. High Returns = High Risk.
2. Private market shares have strict resale restrictions and do not trade freely.
3. You could lose ALL your money.

 

It’s no surprise that today’s economic climate makes even conservative investors wonder how to get higher returns. If the place you’re looking is the private placement market, then do yourself a favour before you invest. Read InvestRight’s private placement guide. Do your homework. And get a second opinion.