"I NEED AN EXAMPLE FOR EACH RSIK PLS "

Additional Key challenges associated with investing in private equities:

• Liquidity risk- As shares are not listed on stock exchanges if an investor wants to sell the shares there is no active market available for them to find the buyer. Reatiles hold very few stocks so for them it's difficult to even change any decision made by the company and due to liquidity issues even sell the shares. *
• Transparency risk - Private limited companies are not obliged to disclose their quarterly financial statements to any governing body so till the time they file their annual financial statement with the stock exchanges no other outside person will come to know about their business decisions.
• Management risk - Most of the time private limited companies are managed by the family and close friends of the chairperson. As it is incorporated with their support they become the key members of the company. So at times it becomes difficult to incorporate the new ideas as they are stuck with their old thought of school.