Unlisted Security

An unlisted security is a financial instrument that is not traded on a formal exchange because it does not meet listing requirements. Market makers, or dealers, facilitate the buying and selling of unlisted securities on the OTC market. On the basis that a listed security is one that is admitted to the official list of a regulated securities exchange, unlisted securities are those that are not listed on a regulated exchange. They can be unlisted because the company does not meet all of the exchange’s listing requirements (down to company size/other factors) or because it has no desire to meet listing requirements and the ongoing costs and disclosure that comes with it. Unlisted securities can, however, trade on over-the-counter (OTC) platforms. In the US, OTC stock listings trade on what are known as pink sheets