Unlisted Security (Noun)
Meaning
A security traded in the over-the-counter market.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's shares were traded as an unlisted security on the over-the-counter bulletin board until they were delisted a year later.
- Investors who purchase an unlisted security do so at their own risk, as these securities are not subject to the same level of regulatory oversight as listed securities.
- Due to the lack of transparency, the unlisted security was difficult to value and proved to be a risky investment for many shareholders.
- The private company's unlisted security was only available for purchase by institutional investors and high net worth individuals.
- The over-the-counter market allows companies to issue an unlisted security without having to meet the rigorous listing requirements of a major exchange.