Stock Exchange Listings

Following an IPO, a company’s shares become publicly tradeable and listed on a stock exchange. This significantly increases the company’s capital and exposure, as a legal, audit, exchange, and other fees begin to accumulate. Issuer Consulting helps you determine what stock exchanges your company is eligible to list on. Each major stock exchange has its own set of requirements. We will find and show you how to list on the stock exchange most suitable for your company.

Formal Stock Exchanges

Two of the most well-known stock markets in the US today are The New York Stock Exchange (NYSE) and NASDAQ. To list on popular exchanges like these, the SEC requires that companies follow specific requirements. Issuer Consulting will guide you through the process of listing your company on a stock exchange. During this process, we will help you maintain compliance with the SEC. Below is an overview that highlights some major stock exchanges.

  1. New York Stock Exchange (NYSE): NYSE is the longest running and largest stock exchange in the world. It has a market cap of about 21 trillion USD.
  2. NASDAQ: NASDAQ is based in New York. It began operating in 1971 and currently has a market cap of over 10 trillion USD.
  3. Investors Exchange (IEX): IEX is an American stock exchange founded in 2012 that became a national exchange in late 2016. It aims to promote fair trading for all investors.
  4. NYSE MKT: NYSE MKT is a branch of the NYSE that trades stock of small and emerging companies.
  5. NYSE ARCA: NYSE Arca is an electronic stock exchange that trades stocks and exchange-traded funds (ETFs). It is the most successful ETF exchange in the world

Major Exchange Listing Requirements

We will ensure you meet the listing requirements of major exchanges such as the NYSE or NASDAQ

Discuss OTC Market Eligibility

We help you determine if trading over-the-counter is an optimal option for your company

Help You File a 15c2-11 Application

We help you complete and file a 15c2-11 application with the SEC, allowing you to trade securities over-the-counter

Over the Counter (OTC) Markets

OTC Markets is not a formal stock exchange. OTC Markets is a less major market that trades smaller companies’ stock. OTC markets are made up of groups of companies that trade stock among themselves using the OTC Markets platform. It is possible for companies to transition from OTC Markets to markets on major exchanges, provided that they meet the major exchanges’ listing requirements. The three branches of OTC Markets are OTCQX, OTCQB, and OTC Pink. These branches have varying requirements, detailed below. Also, FINRA oversees a securities market called the OTC Bulletin Board (OTCBB), another provider of quotes on the OTC markets. Below is a brief summary of these four branches of  OTC securities.

  1. OTCQX: This market is not the most populated due to its extensive qualifying requirements, but is the right fit for wealthier corporations in good standing with the SEC.
  2. OTCQB: The OTCQB primarily lists small and emerging ventures that have accurate financial reports and comply with the SEC’s regulations.
  3. OTCBB: The OTCBB is not recommended, as it has been replaced by OTCQB, but lists companies that sell SEC-registered securities.
  4. OTC Pink: Lists companies in an open marketplace, void of any regulatory requirements.

 

OTC Pink Tiers

Companies fit into five specific tiers within the OTC Pink market.

  • Current Information: These companies frequently provide information in the form of their financial reports to the SEC or OTC Markets.
  • Limited Information: The companies that provide information less frequently, and have not submitted any reports within the last half year.
  • No Information (Red Flag): Companies in this category have either provided no information or it has been more than six months since their last report. This is a red flag for other companies that wish to trade, as businesses in this category may not be trustworthy.
  • Caveat Emptor: This phrase is Latin for “Let the buyer beware.” OTC Markets strongly discourage investors from considering these markets, as they continue to provide little to no financial information. These companies may be engaging in scams or other manipulative business practices.
  • Grey Market: Grey market companies are not trading on any OTC markets due to their lack of financial reporting or failure to keep up with SEC rules. These companies consequently struggle to attract devoted investors.

 

15c2-11 Application

To list securities on over-the-counter markets, companies must file a 15c2-11 application to the Financial Industry Regulatory Authority (FINRA). Filing a 15c2-11 form requires issuers to abide by the requirements of Rule 15c2-11. Broker dealers must receive specific information from issuers to meet these requirements. This includes but is not limited to financial reports and issuer forms such as a prospectus and all Form 10-K, 10-Q and 8-Ks. To file a 15c2-11, the issuer must be in good standing with the SEC, remaining up to date on their filings by meeting all the required deadlines. Once the broker-dealer has the required issuer information, they submit it to FINRA through a market maker.

Not all issuers who wish to trade on OTC markets have to file a 15c2-11. There are numerous exceptions, including, for example, having traded the securities you wish to trade over the counter on a formal exchange previously. Contact Issuer Consulting today to receive professional assistance filing your 15c2-11 application or determine if you qualify for any of its exceptions.

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