Unlisted shares means, shares that belong to the company which is not listed on the stock exchange. These shares can be traded via over-the-counter (OTC) market and also known as OTC securities and an important point about unlisted securities that they are less liquid then listed shares.
If any company wants to be listed on the standard stock exchange than a public limited company should be capable of generating high revenue, capable of affording exchange’s listing fee and company should have the specific number of shares. It is not easy to be listed on stock exchange and that’s why unlisted shares are the risks for investors.
An unlisted public company is a public company, which is a company that can have an unlimited number of shareholders to raise capital for any commercial venture, but which is not listed on any stock exchange. Trading frequency of unlisted shares are irregular and depended upon private transactions. Its volatility would be lower and price preliminary based on estimated capital value.
Unlisted shares are the shares which are not registered with any stock exchange and therefore does not feature on any stock exchange list. Owners of unlisted shares are deprived of the protection that the holder of a listed share enjoys from the stock exchange. These shares are also very difficult to sell and also carry a huge risk. Usually the more exchanges at which a share is listed, the greater is its liquidity. Unlisted stocks are those which are not listed on the stock exchange but hoping to list on stock exchange in the future and there is a huge market of Unlisted Securities in India, Buy Sell Unlisted shares India, Trade Unlisted Shares India, Delisted Shares Dealers India.