How do investors earn return from their investments?
While returns are not guaranteed, there are several common ways for equity crowdfunding investors to potentially earn return:
- Dividends - Investors may earn dividends if the issuer's perform well. The dividend payout ratio varies by issuer and will be detailed on the respective campaign page.
- Share Buyback - Some issuers may offer a buyback option at a specific target price within a predetermined timeframe. This allows investors to exit their investments and earn returns.
- Initial Public Offering (IPO) - If the issuer goes public, investors can sell their shares at a market-determined price during the IPO, potentially benefiting from capital appreciation due to a higher valuation at that time.
- Mergers & Acquisitions (M&A) - In the event of a M&A, investors may have the opportunity to sell their shares at a premium, thus exiting the investment profitably.
Last Update: 22 July 2024