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πΊπΈ US · US taxUnregistered shares
Also called: unregistered securities
In one line
Shares that haven't been registered with the securities regulator, so they can only be sold under specific exemptions.
In plain English
Private-company shares aren't registered with the SEC, so selling them relies on exemptions like Reg D and Rule 144. That's what limits your buyers and timing.
If you were explaining it to a 5-year-old
Toys that aren't allowed in the big public shop yet, so you can only sell them in special, rule-bound ways.
Why it matters when you sell
Being unregistered is the core legal reason private shares are hard to sell β it dictates the whole secondary process.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: US SEC / Investor.gov, IRS (US tax). Our definitions are written in plain English and kept evergreen β see the glossary methodology. General information, not advice.
Educational information only β not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.