Shares/Stock Is it Safe to Invest in Shares of a new Company

[Jasmine]

It's safe to invest in shares of a new company. Companies don't just get listed in the share market randomly. They have to meet certain requirements and get approval from the security exchange board. This board ensures that the company is doing well and that investors' money will be safe. Therefore even the newly listed company are safe. In fact, it can be even better than investing in older companies. Older ones might have already grown a lot, but newer ones have more space to grow. However, it is still important to do research. Sometimes scam companies find loop holes to get listed in the stock exchange.

 

[Mika]

It is true that people trust old companies whereas they always doubt new companies. However, just because a company is new does not mean it is a fraud and just because it is an old company does not indicate it is also legit. A lot of old companies have cheated people. You can check history of stock market and find a lot of big companies have scammed people. No matter how much research you do, it is not possible to find the true intention of these companies.