What Are The Procedures To Get Listed?
There are several modes to go public in the US. There are three major levels of listing:
Here are the levels of stock listing.
OTC PINK SHEETS:
The oldest quotation service for over the counter financial instruments usually termed "the pinks". There are technically no requirements for reports or audited financials on the pinks, though, the pinks have put into operation their own voluntary reporting system and enforce it by publishing symbols to represent the level of disclosure each company is subscribing to. To publish voluntary particulars requires fees of around $5000 a year.
THE OTC BB: The OTC Bulletin Board is controlled by the Financial Industry Regulatory Authority (FINRA) and requires that all companies whose stock is exchanged on the OTC Bulletin Board maintain their current reporting status with the Securities and Exchange Commission (SEC), which includes current audited financial statements. There are no fees paid to FINRA for this quotation, but having a public company current with its SEC reports can cost $25,000 - $50,000 annually.
EXCHANGES:
The OTC PINK SHEETS and the OTC Bulletin Board are useful stock markets especially for upcoming and new companies, but clients with flourishing businesses will want to be on one of the mature and higher stock exchanges - Nasdaq Small-Cap, Nasdaq NMS or NYSE. Each of these stock exchanges has its own qualifications that a company must meet to be listed on the exchange. Generally the types of qualification elements they look for include asset levels, number of shareholders, required Board level committees, revenues, and market capitalization. In addition all exchanges mandate the company to maintain a current reporting status with the Securities and Exchange Commission (SEC). Listing on the exchanges usually involves expenses in the range of hundreds of thousands of dollars.
For a US company a listing on the US stock markets improve points. For Example, a quotation is a way to:
1) Grow your company quicker and make it more successful by increasing your ability to attract "mergers", "acquisitions" and "strategic partners;
2) Grow your company faster and make it more powerful by developing its ability to compete for large corporate contracts;
3) Maximize your personal profit as an owner by decreasing the amount of time it takes to make money on your investment, along with increasing the valuation of your company, as well as, changing the liquidity of your asset to a much more liquid form than that of a private business;
4)Raise money faster and cheaper by improving the "liquidity" factor for your shareholders
Now most of these considerations are for firms going public from scratch. For those of you wanting to buy a shell corporation (public shell), to do mergers, then you might want to consider changing a quotation as mentioned above. For more information on this subject try googling keywords like "mergers companies" or "reverse mergers".
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