November 16, 2021

Unlisted market: How a mechanism for formal trading of unlisted securities can be a gamechanger

As there is a significant non-founder capital being put into businesses before they go public, an unlisted securities trading platform could be very useful. It could potentially open a new market segment. Globally as well, there is a formal market for unlisted securities. Even Facebook, before going for an IPO, traded, and traded well in the unlisted market.

In fact, NASDAQ’s Private Markets, founded in 2014, provides a way for private companies to trade shares ahead of a stock market listing. It offers a trading platform for high quality private issuers who want to remain private. It is a trading forum for their founders, private investors, and employees. Approximately, 477 private companies serving 59,000 shareholders have completed market transactions worth more than $30 billion.

Earlier, at this platform only accredited investors could have invested but now the definition is…

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