Unlisted Stocks

Unlisted shares are the shares of the company that are not listed on stock exchanges.

The unlisted shares include the following:

• Pre-IPO Shares - Shares provided by companies seeking an IPO.
• Shares issued in private placements.
• ESOP Shares - Shares issued under employee stock options.
• Shares held by group shareholders of private companies.

• Opportunity to invest in the company at an early stage.
• No feeling of insecurity for allotment once the company announces an IPO.
• Possibility of better returns.
• Helps diversify the investment.
• Unlisted shares are traded in dematerialised form and are held in demat account.

• Risky transaction as it is not backed by the stock exchanges.
• Longer transaction time.
• Lack of liquidity.
• Higher investment amount as the minimum lot size required to purchase is higher.
• Only a few dealers are available for transactions.