Glossary: Unquoted share
Also known as unlisted shares, these are shares in companies – often smaller ones – that are not traded on any stock exchange either because they prefer to run their businesses in relative privacy or they are simply too small to join a stockmarket and so do not meet the listing requirements, such as minimum market capitalisation. As unquoted securities are not traded on – and regulated by – a recognised stock exchange, prices can be volatile and they can be risky investments.
A way of valuing a company by the total value of its issued shares and calculated by multiplying the number of shares in issues by the market price. This means the market capitalisation fluctuates continually as the value of the shares change in the market. For example, HSBC has 17.82bn shares in issue at a price of 646.2p making a market capitalisation of £115.15bn.