Unlisted securities are financial instruments that are not traded on formal exchanges, such as the stock market. These can include shares of private companies, bonds, or derivatives, which are typically traded over-the-counter (OTC) directly between parties. Unlisted securities often carry higher risks due to their lack of liquidity and transparency, but they may offer unique investment opportunities for those willing to assume the additional risk. Investors should conduct thorough due diligence before investing in unlisted securities.