Unlisted Securities

Unlisted securities are investments that are not listed on a public stock exchange. Unlike listed securities, they are not publicly traded, and are often referred to as private investments. These securities are usually only available to a select group of investors, such as institutional investors or high net worth individuals.

Advantages of Unlisted Securities There are several advantages to investing in unlisted securities, including: Potentially Higher Returns: Unlisted securities often offer higher returns compared to publicly traded securities. This is due to the fact that private companies are usually riskier than publicly traded companies, and therefore offer higher returns to compensate for this risk.

Unlisted shares refer to stocks or shares that are not traded on a public stock exchange. In other words, they are not listed or publicly traded on a stock market such as the New York Stock Exchange (NYSE) or the Nasdaq. Instead, they are privately held and traded among a small group of individuals or investors, typically through private placement transactions or through over-the-counter (OTC) markets.

The main advantage of unlisted shares is that they are not subject to the same level of public scrutiny and regulatory requirements as listed shares. This can make them an attractive option for some companies, especially startups, as they may be able to raise capital more quickly and easily

Advantage of investing in unlisted securities

  • Diversification of risk
  • Lower volatility
  • High growth investments
  • Peace of mind due to lesser volatility
  • Being a shareholder of the company before the IPO.
  • Listing Gains – Pre discounted Price
  • Eample-
    Every body knows IPL cricket league, CSK is the only sports franchise, whose shares are trading in the unlisted market. In the year 2020, its share price was only 25rs but today it is trading at 190rs.Imagine, If you bought it for rs25,today it would be 7x to 8x times bigger or gained than your investments.