Unlisted is an internet-based security trading and information dissemination platform, enabling subscribing companies to post company announcements over a centralised website (as opposed to company websites, or via other media, if at all) for free access by all, and to facilitate trading in those companies’ various types of security (e.g. shares, convertible notes). It was established in December 2003 to provide a “cost-efficient, easy way for small to medium sized companies to trade their shares and to keep their shareholders informed.” Unlisted has been trading since February 2004, and currently has 21 subscribed companies, with a combined market capitalisation at the beginning of February 2005 exceeding $880 million. These companies have a median number of shareholders of around 530, a median ownership stake of around 75% for the largest 20 shareholders, and a median foreign ownership stake of less than 1.5% (compared with almost 50% for firms having shares listed with New Zealand Exchange Limited, NZX). Institutional ownership of Unlisted issuers – whether by local or overseas institutions – is negligible. By providing a centralised platform for bilateral, or over-the-counter (OTC) trading, Unlisted reduces trading (including search) costs, and generally contributes to the price discovery process, creating price transparency and liquidity for companies that would otherwise trade via decentralised OTC.