Companies that are having trouble getting listed on traditional stock exchanges might consider selling shares of their stock over the counter. Over the counter securities are traded on OTC Markets, through an online alternative trading system (ATS) that includes broker-dealers and market makers. The biggest reason that companie
Category: Stock Exchanges 35
If you are looking for a way to raise capital and increase the visibility of your company, you might be thinking about going public. There are multiple exchanges from which to choose, but one of the biggest options in the world is the NASDAQ. Even though many companies listed on the NASDAQ are tech companies, there are other ind
In September of this year, Nasdaq updated its LAS Form, which stands for the Listing of Additional Shares. NASDAQ also changed the process for reviewing such forms. What does this mean for companies looking to list their shares for sale on the exchange?
Nasdaq Rule 5250
Nasdaq Rule 5250 covers a variety of rules and regulation
Are you planning on taking your company public? If so, there are several steps you need to follow during your initial public offering. You might also be wondering if you need to hire a transfer agent. A transfer agent plays an essential role in any IPO. Taking your company public comes with new regulations and laws you need to f
Benefit packages are crucial to attracting talented, high-level employees to a company. Basic things such as a 401(k), medical, and dental insurance are considered typical, so companies must do something to stand out and provide unmatched value. An Employee Stock Purchase Plan (ESPP) can help entice quality employees by offering
Changes to the SEC Rule 15c2-11 went into effect on September 28, 2021. The new rules address amended 15c2-11 application requirements, requirements for public disclosure of information before quoting a security, unsolicited quotes, and the expanded role of the OTC Markets Group. See our previous articles about the exact requ
The heads of successful Nasdaq companies have put in the work necessary to transition from a privately held company into one that is publicly held. Though going public partially cedes control over the company to shareholders, there are countless reasons as to why listing on the Nasdaq makes sense. Let’s take a look at the
Overview
The Stock Market as we know it has existed for over 100 years with an average of 12% gain over a 10-year period. These kinds of numbers are prime for those who hold onto their investments for the long-term. There have been two bona fide crashes of the market that happened in 1929 (Black Tuesday), which signaled the
In September 2020, the SEC amended Rule 15c2-11 to enhance the OTC Market's efficiency and facilitate capital formation for issuers. We published an article outlining all the details here.
OTC Markets lists a significant 11,000 stocks not listed on national exchanges. The market caters to almost all kinds of industries and co
On Sept. 16, 2020, the SEC adopted amendments to Exchange Act Rule 15c2-11 directing broker-dealers not to publish security quotations in the absence of issuer's current information, subject to certain exceptions. The amended rule enhances the efficiency of the OTC market and facilitates capital formation for issuers. Exchange A
On June 2, 2020, the Nasdaq Stock Market LLC filed a proposed rule change with the SEC to amend Rule IM-5101-1. The rule provides Nasdaq authority to deny or continue listing to a company but rules out certain factors. The proposed rule change will establish NASDAQ's position related to quality audits' importance by enhancing di
Recently, due to COVID-19, exchange listed companies have been struggling to comply with rules set forth for timely administration of annual shareholder meetings and SEC filings. Considering these situations and the fact that many listed companies are facing the risk of not meeting the continued listing standards, the SEC and ex
On December 3, 2019, the SEC approved NASDAQ’s proposal on extending direct listings. This means that companies will now be able to directly list securities on NASDAQ’s “Nasdaq Global Market” and “Nasdaq Capital Market” in addition to “Nasdaq Global Select Market”, which was already eligible for direct listing.
The Securities and Exchange Commission recently released a sweeping proposal to amend Rule 15c2-11 and provide a pathway to de-list currently trading OTC securities that are delinquent in their financial reporting or are shell companies. This new rule will modernize the existing Rule, updating several areas including rules about
Effective December 12, 2019, the OTCQX rules to list and maintain a company on the OTCQX have been modified. The OTCQX listing holds the highest level of entry compared to its kinship with other market tiers on OTC Markets, and inherently has "high standards". By complying to these recent changes, issuers can still remain on
Listing on NASDAQ or NYSE can be a ticket to new growth for many companies. However, it is difficult to meet the listing requirements for such large national exchanges. Many businesses find that they simply have no hope of premiering on such markets after their IPOs. For those companies, there are OTC markets. OTC markets are or
Is your company is considering a public offering? Does it plan to trade on an over the counter (OTC) market? If so, you may consider a Regulation A+ (Reg A+) IPO. Reg A+ IPOs are relatively new, streamlined, micro-IPO's. They are different from traditional IPOs in that they are size-restricted, and have fewer regulations.
The
In addition to federal and state corporate law, companies which trade on public markets are also subject to institutional regulation. In other words, your publicly-traded company must follow rules created by the exchange on which you trade. It is simply the price of playing ball. The most relevant exchanges are NASDAQ and the Ne
Beginning January 19, 2019, OTC Markets will begin to require all U.S. OTCQB and OTCQX companies to give verified share data through the services of a transfer agent participating in their Transfer Agent Verified Shares Program. Through their program, transfer agents can provide regular and up-to-date information on a company
On November 7th, the OTC Markets Group released a new stock promotion policy. This policy aims to improve the overall market transparency for investors, while addressing the issue of misleading, manipulative, or fraudulent stock promotion.
Market Transparency and Fraudulent Promotional Campaigns
The wide use of digital media h