InvestorQ : Do all shares have to be listed on the stock exchange?
Swati Naik made post

Do all shares have to be listed on the stock exchange?

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3 years ago
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That is not compulsory. For example, you can have a private limited company which also issues shares but only to a limited number of shareholders. Normal a private company must have less than 50 shareholders else it automatically becomes a public limited company. Even in case of public limited company, there is no compulsion to list on the stock exchanges and get traded. There are many large companies which are large public limited companies but are not listed and therefore they are not traded. In India, the Godrej group was an unlisted entity for a very long time before they decided to go public. India’s most valuable company, TCS, went public only in 2004. Then there are companies like Nirma which were listed at one point of time but subsequently chose to delist the company from the stock markets. There is no compulsion to be listed if you are a company with shareholdings.
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