US Pink Sheet
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The stated and
un-stated listing requirements for the US Pink Sheets are as follows:
minimum requirement of 25 stockholders of record
holding one board lot each
not a blank check company
current financial information must be available to
market makers and stockholders,
foreign companies must have applied as exempt issuers
under 12g3-2b with the SEC,
must have a market maker submit 15c211 application to
NASD and agree to act as market maker for securities of company.
Management of the PinkSheets have become much more
aggressive in the last two years in recruiting new companies to trade on
the PinkSheets. It is, however, becoming more difficult for once
active now inactive companies to be quoted on the Pink Sheets.
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There is no difference in the trading system currently used by the OTCBB
and the Pink Sheets. The Pink Sheets are currently where the OTCBB
was three years ago prior to the OTCBB requiring all companies quoted on
the OTCBB to be fully reporting issuers under the Securities Act of 1934
with the SEC. Quotes for PinkSheet companies are available on the
Internet on almost all quotation services.
There are a number of advantages to micro-cap companies
in particular listing on the Pink Sheets. The greatest advantage is
that companies are not required to go through the expense of filing a
registration document with the SEC and maintaining that registration.
Non-reporting issuers are also exempt from the corporate governance
requirements of Sarbanes Oxley. Management therefore can focus on
developing the business of the company instead of trying to meet ever
increasing regulatory standards which do not always fairly apply to micro
and small cap companies.
Go to
the listing requirements of other exchanges:
Master Chart Summary, Amex , TSX, NASDAQNM, NASDAQSM, TSX Venture, CNQ, OTCBB, US Pink Sheets |
Alixe B. Cormick
Venture Law Corporation
618 - 688 West Hastings Street
Vancouver, B.C, V6B 1P1
Phone: 604-659-9188
Fax: 604-659-9178
E-mail Us |
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