What are unlisted shares?

What are unlisted shares? Can someone please explain with an example?

Unlisted shares simply mean the shares which are not listed on any stock exchanges. They can be bought or sold through intermediaries and platforms that facilitate trading in unlisted shares.

These intermediaries buy the shares from employees who hold ESOPS, i.e. existing investors, and sell them to the new investors who are keen to invest in those shares. These are also known as OTC securities as they are traded over the counter.

E.g. Unlisted shares of Paytm.

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Thanks! The shares bought and sold in the Grey market are also unlisted shares correct?

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Yes :slight_smile: