OFEX is an unregulated trading facility established by the stockbroking firm JP Jenkins in which shares of smaller companies may be bought and sold.
Private investors beware - while there can be great investment opportunities in OFEX stocks, risks are much higher than in regulated stockmarkets.
A number of companies on the old Unlisted Securities Market did not transfer to the Alternative Investment Market when it was launched.
Their shares on now traded through OFEX. In addition, company shares which were once traded under the Stock Exchange rule 4.2 are now traded through OFEX. Rather than move up to AIM, several of these companies' shares are now traded through OFEX. As a market-place it is subject to very little regulation and beware that the spread between buying and selling prices may be much larger than in the Stock Exchange and AIM.