Unlisted shares refer to the equity shares of a company that are not listed on any recognized stock exchange. This means they cannot be freely traded on public markets like listed shares and are typically traded through private transactions.

Unlisted shares can be purchased through private placements, over-the-counter (OTC) markets, or direct negotiations with the company or existing shareholders. You may also acquire them through specialized brokers.

Investing in unlisted shares comes with several risks, including low liquidity, valuation uncertainty, and less regulatory oversight compared to listed shares. It's important to conduct thorough due diligence before investing.

Unlisted shares offer the potential for high returns, especially if the company grows and eventually goes public or is acquired. They also provide access to unique investment opportunities not available on public markets.

Selling unlisted shares typically involves finding a buyer through private negotiations, OTC markets, or brokers who specialize in unlisted securities. The process can be more time-consuming compared to selling listed shares.

The valuation of unlisted shares is not determined by market prices but through methods such as discounted cash flow (DCF) analysis, comparable company analysis, and independent appraisals. This can lead to subjective valuations.

Unlisted shares are subject to different regulatory standards compared to listed shares. Companies issuing unlisted shares have fewer disclosure requirements, resulting in less transparency for investors. It is essential to understand the legal framework and compliance requirements in your jurisdiction.