Share Investor: Unlisted

Friday, July 23, 2010

Unlisted Market Discussion

I have been aware of the Unlisted Market for shares, it has been around for a few years. It is independent of the NZX and steers clear of the nonsense and conflicts of interest of its bigger brother.

There are about 40 listed stocks or financial instruments and they offer the following:

For Issuers, Unlisted:

Provides a centralised and transparent trading mechanism

Minimises participation costs

Provides an arms length price discovery mechanism for securities, minimising the need for regular and costly company valuations

Improves liquidity

Facilitates communication with investors and shareholders

Lowers transaction costs

Removes the burden of share trading administration from the company secretary by centralising existing OTC trading

Enables exposure to greater investor interest and publicity

Provides a low-cost, first step for companies to facilitate share trading while examining their future options for a registered market listing

For Shareholders
For companies that have yet to make any move to formal or registered security markets, Unlisted provides a simple means for existing and new shareholders to buy and/or sell shares in Issuers.

For professional investors or venture capitalists, Unlisted provides a mechanism to buy into smaller New Zealand businesses, with the knowledge that should they wish to sell their ownership stake they can easily do so through the trading facility.

For Stockbrokers
Participation in Unlisted gives brokers' clients access to a broader range of shares in small and growing New Zealand companies.

Unlisted's rules and regulations
Unlisted is a trading facility that is not a registered stock exchange under the Securities Markets Act. Investors in companies quoted on Unlisted are not protected by the Securities Market Act's protections relating to insider trading, continuous disclosure, Directors' and officers' relevant interest disclosure or Substantial security holder disclosure.

Issuers remain bound by the obligations contained in their constitutions, the Securities Act, the Companies Act and the Financial Reporting Act, and by Common Law.

Quotation on Unlisted does not affect an Issuer's status under the Takeovers Act and Code, and the usual regulatory protections associated with a registered exchange and Securities Commission enforcement of them are not available. Source from - About Unlisted

As part of the Share Investor Forum, you can now discuss Unlisted Stocks on this part of the site.

The companies listed here are not for everyone, most are moderately speculative and in the early stages of life as companies.

List some of your own if you desire. It aint hard.

Enjoy.

Disclosure - None

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From Fishpond.co.nz