Shadow Stock

A shadow stock refers to a publicly traded company that is relatively unknown to the general market but has the potential for significant growth. These stocks are often small-cap or micro-cap companies, not widely followed by analysts, and can offer investors high rewards, though they also carry higher risks due to their volatility and lack of visibility.

Example

A small tech company listed on a secondary exchange might be considered a shadow stock, as it’s under the radar of most institutional investors but has strong growth potential.