A company with previously issued securities that are no longer quoted or traded on formal exchanges such as the NYSE or TSX. Shares in these companies are available in the over-the-counter market; however they trade in very low volumes, if at all.
Investopedia Says:
One reason for such companies is the fact that a private firm cannot have more than fifty shareholders. By remaining unquoted, the firm's owners can operate the business in a similar nature to a private company, avoiding federal and exchange regulations. Unquoted public companies can also result from a company being delisted. Since the shares of these companies are not quoted and are rarely traded, they are often illiquid and difficult to price. Usually analysts will value unquoted shares by using comparables or price multiples.
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Listed securities are 'the cream of the crop'. Find out how a firm can lose that status and why you should be wary. The Dirt On Delisting
