Definition of Unlisted security:
Unlisted securities are usually issued by smaller or new firms that cannot or do not wish to comply with the listing requirements, such as market capitalization thresholds or a willingness to pay the listing fees, of an official exchange. Furthermore, because they are not exchange traded, unlisted securities are often less liquid than listed securities. Unlisted stock can be tracked via pink sheets or on the OTCBB (OTC Bulletin Board).
Ordinary shares (common stock) or other securities of a firm not listed (traded) on any official exchange. In the US, unlisted securities are traded in over the counter market, in the UK they are traded on the Alternative Investment Market. Such securities are issued usually by smaller or new firms who cannot or do not wish to comply with the listing requirements of an official exchange.
An unlisted security is a financial instrument that is not traded on a formal exchange because it does not meet listing requirements. Trading of unlisted securities is done on the over-the-counter (OTC) market and they are often called OTC securities. Market makers, or dealers, facilitate the buying and selling of unlisted securities on the OTC market.
How to use Unlisted security in a sentence?
- Unlisted stocks can be tracked via pink sheets or on the OTCBB.
- An unlisted security is a financial instrument that is not traded on a formal exchange because it does not meet listing requirements.
- Unlisted securities are also called OTC securities as trading is done on the over-the-counter (OTC) market mostly by market makers.
Meaning of Unlisted security & Unlisted security Definition