Although private securities are considered to be generally less liquid than public securities, there are a few ways you can earn a return on your investment.
Compared to public stocks, private securities are generally considered to be less liquid. Investments in the private market are risky and there is no guarantee you will see a positive return on your investment. However, there are three ways that you may be able to earn a return on your investment.
- Netcapital's Secondary Transfer Feature (STF). Securities purchased on Netcapital’s Funding Portal may be able to be transferred to other investors using the Secondary Transfer Feature (STF). You can read more about what the STF is in our article, "What is the Secondary Transfer Feature (STF)?"
- The company you invest in may be acquired. In that case, investors should receive their pro-rata share of the sale price.
- The company you invest in may go public in an IPO. In this case, the securities you purchase may be listed on a public exchange and you can sell them on public markets.
All investors are expected to conduct their own due diligence before making an investment on our site. For more information, we recommend you read our educational materials.