Unlisted security

A security traded in the over-the-counter market that is not listed on an orgainzed exchange.

Unlisted Security

A stock that is not traded on an exchange. Very often, unlisted securities are very small and do not trade on an exchange because they do not meet market capitalization requirements. Unlisted securities may be traded informally (theoretically, one may stand on a street corner and sell his/her stocks), but the term usually refers to securities traded through a dealer network. They are also called over-the-counter securities.

unlisted security

A security that trades only in the over-the-counter market. Compare listed security.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Unlisted security.

A security, such as a stock, is unlisted when it does not meet the listing requirements or pay the listing fee of any of the organized exchanges or markets.

Unlisted stock may be traded over-the-counter (OTC), however, and its price and volume may be tracked in the Pink Sheets or on the OTC Bulletin Board (OTCBB).

In most cases, unlisted stocks are thinly traded because they do not get much attention from the media or financial analysts, and so may be too risky for many investors.