An unquoted public company is an unlisted company that may trade over the counter. An unquoted public company may be too small to qualify for a listing on an exchange or it may be a company that has been delisted from an exchange. Major exchanges have listing requirements for stocks that include minimum annual earnings, a minimum number of outstanding shares, a minimum net worth, and the payment of substantial fees. The major exchanges in the United States are the New York Stock Exchange, and NASDAQ. Unquoted companies can raise capital through private placements, selling shares to institutional investors such as insurance companies or venture capital firms, or to Accredited Investors.

 

Going Private

Going private is the process of converting a public company into a private entity. The method of conversion may include a management buyout, a private equity buyout, or a tender offer. The conversion to a private company is usually the result of determining that being a public company no longer offers significant financial benefits. The conversion removes the company from all SEC reporting requirements and from any listings on public stock exchanges.

 

 

Par Value - Stocks and Bonds

Par value is the face value, nominal value, or original value of financial instruments such as stocks and bonds. The amount is established by the issuer, representing the amount to be paid for bonds at maturity or the minimum issuance price for stocks. It is not the same as market value which may differ greatly. For bonds, it is the basis for paying interest. For stocks, any amount paid over par at issuance is recorded as Paid in Capital.

 

No-par Value-Stocks

No-par value stocks are issued without a minimum or face value allowing the issuer to price shares based upon supply and demand. This provides issuers with flexibility and it simplifies accounting.

 

 

Direct Listings - Direct Public Offerings

Accredited Investors - Net Worth Standards

Securities and Securitization

Private Equity Funds - Private Credit Funds

Unregistered Securities - Stock

Blank Check Company