Unlisted public company
What is an unlisted public company?
It’s a company not listed on any stock exchange that can sell shares to raise capital for commercial ventures. It’s typically a small company not suitable for listing on an exchange because it doesn’t meet market capitalisation requirements.
Where have you heard about unlisted public companies?
You seldom hear about opportunities to invest in unlisted public companies unless you're a friend or relative of the owner, or closely associated with the business. They're popular in Australia, but they’re not allowed to advertise for investors there.
What you need to know about unlisted public companies.
In contrast to a private company, an unlisted public company doesn't have a limit on the number of shareholders it can have. If you buy shares in an unlisted company, you can sell them back to the firm at a later date or to someone else as there’s no official market for the shares.
Unlisted companies can potentially generate huge returns if you get in early enough, but by the same token the risks are very high.