Unquoted Public Company


DEFINITION of 'Unquoted Public Company'

A company with previously issued securities that are no longer quoted or traded on formal exchanges such as the NYSE. Shares in these companies are available in the over-the-counter market, but they trade in very low volumes, if at all.

BREAKING DOWN 'Unquoted Public Company'

One reason for such companies is the fact that a private firm cannot have more than 50 shareholders. By remaining unquoted, the firm's owners can operate the business in a similar nature to a private company, avoiding federal and exchange regulations. Unquoted public companies can also result from a company being delisted. Because the shares of these companies are not quoted and are rarely traded, they are often illiquid and difficult to price. Usually analysts will value unquoted shares by using comparables or price multiples.

  1. Toronto Stock Exchange - TSX

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  2. Comparables

    A valuation technique in which a recently sold asset is used ...
  3. Delisting

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  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Unlisted Security

    A financial instrument that is not traded on an exchange, but ...
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  1. If a stock is delisted, do shareholders still own the stock?

    If a company has been delisted, it is no longer trading on a major exchange, but the owners of the company shares are not ... Read Full Answer >>
  2. I own shares of a company that just received a delisting notice from Nasdaq. Does ...

    Let's start by walking through the reasons for listing requirements and what happens when a company's stock is delisted from ... Read Full Answer >>
  3. How does privatization affect a company's shareholders?

    The most recognized transition between the private and public markets is an initial public offering (IPO). Through an IPO, ... Read Full Answer >>
  4. What happens if I maintain a short position in a stock that is delisted and declares ...

    The short seller owes nada. Nil. Zip. Zero. When you short sell you borrow the shares, sell them on the market, and then ... Read Full Answer >>
  5. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
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    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>

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