Stock Market Tips 2

Stock exchanges do not permit trading in unlisted stocks, nor do they permit their registered members, i.e. brokers to deal in unlisted stocks. Therefore, it' you want to buy unlisted stocks you won't get the protection of the stock exchange authorities; nor will you be able to use the services of your stockbroker in handling such transactions. Moreover, in the absence of stock exchange quotations you won't be able to assess what the market price of an unlisted stock should be. All these factors create complications and risks, which you are not likely to be in a position to handle. As a basic rule, therefore, you should avoid investing in stocks of unlisted companies.

How does one know whether a stock is listed or not? It's simple; all stocks whose prices are quoted in daily newspapers are listed stocks. Unlisted stocks are never quoted. Therefore, the fact that a stock is quoted means that it must be listed. This is the easiest and surest way of finding out whether a particular stock is listed or not.