Buying shares in a small company?

[tegwin]

I have been dealing with a company recently which I believe is going to do great things....

I want in on the action...But know very little about shares..

The company is a "ltd" company with a registered number... Does this mean I can buy shares?

I cant find them on any "share price" websites....So how does one buy shares?

Or have I got the wrong end of the stick, and infact you can only buy shares from a PLC?

HELP!

[UpTheIron]

You can buy shares in a limited company, but if they are not listed then you need to approach the company and ask. They are of course under no obligation to sell.

[Eric Mc]

Private means private. Shares in these companies (which make up the bulk of companies in the UK) can only be bought by an individual when the existing shareholders agree to sell some or all of the sahres they already own or they decide to invite outsiders to buy some newly issued shares.

[seaninog]

I gotta say mate, if you're asking these kinds of questions then - with the greatest respect - I don't think you should be buying shares in private companies.

For starters, how will you value the company? It may be about to do great things but if its value is at £500m then I'm guessing most of these "great things" (and a lot more besides) have already been priced in.

Then you need to be aware of your shareholder rights. What happens if they stop producing annual accounts or sharing this information with the shareholders? You'll be buggered and have to spend a lot of money on lawyers to convince them to do otherwise.

And what about exit? How will you get your money back? Seriously, how? Do you believe that a competitor will take them out? Yeah, possibly but usually when they hit a cash-flow problem or other such growing pain and end up selling the whole lot for peanuts.

If I still haven't convinced you then let me say that if you do make the investment then make sure it's EIS compliant to save you money on tax. I'm guessing you won't know what that is and I won't tell you...just so it means you have to go and get an accountant to help you with this. Maybe he'll convince you where I've failed...

Sorry if I come across a little rude mate but I really don't think you should be doing this.

Good luck whatever you decide.

[The_Doc]

I'm looking to buy some shares in The Black Sheep Brewery near me.

Their website said:

SHARE INFORMATION The Ordinary Shares in The Black Sheep Brewery plc are not quoted on any recognised investment exchange, such as the Official List of the London Stock Exchange or Alternative Investment Market.
However, if you wish to trade in the company's shares, our stockbrokers Brewin Dolphin Securities Ltd, use their reasonable endeavours to match willing buyers and sellers of Ordinary Shares from their Manchester office.
If you would like more information on this service, please contact Neil Harding at Brewin Dolphin Securities Ltd on 0161 8394222.

I dont want profit, I like beer.