Is it necessary for a Public Limited Company to be listed in a Stock Exchange to do IPO



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Is it necessary for a Public Limited Company to be listed in a Stock Exchange to make a Public Offer for its Equity Shares or Debt Instruments or is listing a requirement only for those companies who want their equity and debt instruments to be traded in the secondary market?


3 Answer(s)


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Good question. "Public Limited" by default means that the company is listed in a stock exchange. However a company's shares and debt can be traded even without being listed in an exchange - such company's are called private limited companies. Hope that makes sense?

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Sir can you elaborate on the trade of securities of un-listed companies? How and where does this take place?

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A financial instrument that is not traded on an exchange, but through the over-the-counter (OTC) market. Unlisted securities are also called OTC securities. Market makers facilitate the buying and selling of unlisted securities in the OTC market. Because they are not exchange traded, unlisted securities can be less liquid than listed securities.

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