How to Invest in Unlisted Companies or Buying Stocks Before They Go Public

Do you love to buy the stocks of high growth but NON-LISTED companies? If interested, is there any option to buy such company stocks? Yes, generally public have two options; Retail investors can identify and invest on mutual funds that invested in unlisted, but high growth companies like Facebook and Groupon. For example, Morgan Stanley Investment Management and T. Rowe Price Group Inc. mutual funds hold a small pieces of Facebook and other unlisted company shares. Another option is only for High Network Individuals to can spend millions or billions to take stake in a company. This method required huge money to execute the plan.

A number of mutual funds are quietly holding shares of private companies, including stakes in those two technology phenoms.

Investors are mostly likely to find these kinds of investments in mutual funds that specialize in small-cap or mid-cap stocks, growth stocks, or the technology or communications sectors. It usually won’t be obvious that the fund owns shares of private companies—investors likely will have to scour the fund’s filings to figure it out.As a retail investor, we all should know the possible options to invest on such unlisted companies. An article by By RACHEL LOUISE ENSIGN in Wall street Journal provides a good eye-sight to crack this puzzle, buying stocks before the company go public.

Here is the article in full