Direct placements are made in securities are not listed on any stock exchange. Non-listed securities are purchased from the issuer of the securities, or in the secondary market. The nature of a trading market in unlisted securities cannot be predicted. However, such securities sometimes carry higher yields, or greater protection, than would be typically available for publicly offered securities of the same type. On the other hand, non-publicly traded securities are sometimes subject to restrictions on resale and the market for their resale is less liquid than for publicly traded securities. There is no active market in non-listed securities.
In the Investors view, because closed-end company’s can trade in unlisted securities, investors should not place much credence in the reported net-asset value NAV of funds. Instead focus on the capital appreciation compared to cash, that most funds claim to seek in there prospectus.