Buying shares, what to look out for?

Question

My company has just had some shares released via another shareholder and I've been offered to buy some.

however I don't know the first thing about how to buy shares, can anyone give some advice about what to look out for and what questions to ask, risks and benefits etc.?

Thanks in advance!

Answer 1

If you believe in your company, i.e. that it has a good business model, earnings growth potential and etc, then you may want to consider buying the shares.

Things to look out for are lock-up periods (how long do you have to hold the shares before you can sell them), current market price vs. the offer price and any other conditions.

Disclaimer: This is NOT an investment advice!

Answer 2

    If you invest in the company you work for, you've really got all your eggs in one basket. Pretty much every business is at risk in a bear market, stagflation situation . If it provides an essential service, has low debt/ good credit, and is a business that would be hard for new competitors to start in - that'd be a good wager.  

Answer 3

You must be working for a private limited company and its shares are not listed in the stock market. And as such any shareholder mush sell his/her shares privately. If you are interested to buy this type of shares, you need to first get a copy of its latest final accounts, like the balance sheets and ask an accountant to confirm its accuracy, and its estimated share price.  Since you are working there you also should know whether it is managed properly and is making profit yearly. Buy only when you find the share price reasonable and the reason why the shareholder wants to sell his shares.