What is the Difference Between Listed and Unlisted Company?

The main differences between listed and unlisted companies can be summarized as follows:

1. Meaning: A listed company is a stock exchange-listed company wherein the shares are openly tradable, while an unlisted company is a company that is not listed on the stock market.
2. Ownership: Listed companies are acquired by several shareholders, while unlisted companies are acquired by private investors like founders, founders' family, and peers.
3. Liquidity of shares: Shares of listed companies are very liquid, as demand is readily open, whereas there is no openly available market for shares of unlisted companies.
4. Risk and returns: Listed and unlisted companies have different risk and return potentials.
5. Regulations: Listed companies are required to follow the guidelines and regulations provided by the stock exchange and the Securities and Exchange Board of India (SEBI), while unlisted companies need to adhere to the guidelines and regulations given by the Central Government.

In essence, listed companies are those that have issued securities to the public and are quoted on one or more recognized stock exchanges, while unlisted companies are those whose securities do not appear on the list of the stock exchange.

Comparative Table: Listed vs Unlisted Company

Here is a table comparing the differences between listed and unlisted companies:

Listed companies are those with securities listed on a recognized stock exchange, which can be bought and sold by the public. They must comply with strict guidelines and disclose financial and other information to the public. On the other hand, unlisted companies do not have any of their securities listed on a stock exchange and have relatively lower disclosure and transparency requirements. They typically have fewer shareholders and lower liquidity compared to listed companies.