What is an 'Unquoted Public Company'

An unquoted public company, also known as an unlisted public company, is a firm which has issued shares that are no longer traded on a stock exchange.

BREAKING DOWN 'Unquoted Public Company'

A public company might be unquoted because it is too small to qualify for a stock market listing, has too few shareholders for a listing or has delisted. It might also want to avoid ownership disclosure requirements under certain listing regimes.

To be listed on an exchange such as the New York Stock Exchange, companies must exceed an annual income or market capitalization threshold. They must issue a specific number of shares and be able to afford the exchange listing fee.

By remaining unquoted, the firm's owners can operate the business more like a private company and avoid exchange regulations. But while unquoted public companies are less heavily regulated than listed public companies, they are more regulated than private ones. As public companies, they still have to comply with financial reporting requirements, and may be subject to the same takeover codes as listed companies. Unquoted public companies may also be banned from marketing themselves to investors.

As unlisted securities, shares in unquoted public companies are bought and sold in over-the-counter markets. Because they are rarely traded and often illiquid, they are difficult to price. Unquoted public companies are valued using comparables such as price-earnings ratios.

RELATED TERMS
  1. Public Company

    A public company issues securities through an initial public ...
  2. Forced Initial Public Offering

    A forced initial public offering is an instance in which a company ...
  3. Public

    Public refers to anything that can be accessed by any person ...
  4. Primary Listing

    A primary listing is the main stock exchange, such as the New ...
  5. Listed Security

    A listed security is a financial instrument that is traded through ...
  6. General Public Distribution

    A general public distribution is a primary market offering in ...
Related Articles
  1. Insights

    The Ups and Downs of Initial Public Offerings

    Learn why initial public offerings (IPOs) aren't the best option for every company. Find out factors to consider before going public.
  2. Investing

    Why Public Companies Go Private

    Privatization can give management more time to make money for investors, but at what cost?
  3. Managing Wealth

    IPO Versus Staying Private: Pros and Cons of Each

    Here's a look at how the benefits or risks in having an IPO as opposed to going private.
  4. Investing

    The Road To Creating An IPO

    Through an Initial Public Offering, or IPO, a company raises capital by issuing shares of stock, or equity in a public market. Generally, this refers to when a company issues stock for the first ...
  5. Insights

    Why Are Companies Taking Longer To Go Public?

    Learn why private companies are waiting longer to have their IPOs. Understand why it may be more advantageous for a company to stay private.
  6. Investing

    Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
  7. Investing

    Initial Public Offering (IPO) Explained

    An initial public offering (IPO) marks the start of a company's publicly traded life. Find out why companies undergo IPOs, and how the process works.
RELATED FAQS
  1. What is the difference between an IPO and a seasoned issue?

    Learn how companies issue IPO securities when they first go public and seasoned issue shares if they sell more stock in the ... Read Answer >>
  2. What are the requirements for being a Public Limited Company?

    Discover the various different requirements that a company must meet in order to be recognized and traded as a public limited ... Read Answer >>
  3. Where can I find fiscal year data for publicly traded corporations?

    Access fiscal year data for publicly traded corporations that is required by the government to be readily available to the ... Read Answer >>
Trading Center