Unlisted Security Understanding Off-Exchange Investments

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An unlisted security refers to a financial instrument that is not traded on a formal stock exchange. These securities are typically bought and sold through over-the-counter (OTC) markets rather than on public exchanges. Unlisted securities can include stocks, bonds, derivatives, and other financial instruments. Because these securities are not traded on public markets, they often have lower liquidity, less price transparency, and may involve higher risks and costs in trading. Investors need to be particularly cautious about the credit risk and market risk associated with unlisted securities.

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