FINRA, an “independent, not-for-profit organization authorized by Congress”, runs and provides regulatory services to the OTCBB by “writing and enforcing rules governing the activities of more than 4,100 securities firms with approximately 639,780 brokers”. Most OTCBB companies are dually quoted, meaning they are quoted on both otcbb market OTCBB and the one of those OTC Markets Group markets. OB” in a stock-ticker listing signifies “over-the-counter bulletin board”.
Microcap Stock: A Guide for Investors”. This article contains content that is written like an advertisement. For decades, the NQB reported quotations for both stocks and bonds, publishing the quotations in the paper-based Pink Sheets and Yellow Sheets respectively. The publications were named for the color of paper on which they were printed. In September 1999, the NQB introduced the real-time Electronic Quotation Service.
To be quoted on the platform, companies are not required to file with the SEC, although many choose to do so. Many foreign issuers adhere to the listing requirements of qualified foreign stock exchanges and make their home country disclosure available in English. There are also a significant number of U. OTC Markets Group designates securities in one of three markets to indicate the level of financial and corporate disclosure provided by the companies using its quotation system. Apart from the OTCQX market, which has rules that include financial requirements, the designations do not signify issuer quality or merit of any security. The OTCQX and OTCQB markets are considered ‘Established Public Markets’ by the SEC for the purpose of determining the public market price when registering securities for resale with the SEC in equity line financings.
The OTCQX market includes both multinational companies seeking access to U. To be traded on this tier, companies must undergo a qualitative review by OTC Markets Group. Pink is an open market that has no financial standards or reporting requirements. The stock of companies in the Pink tier are not required to be registered with the SEC. Companies in this category are further categorized by the level and timeliness of information they provide to investors and may have current, limited, or no public disclosure. Companies submitting regular Quarterly and Annual Reports go into the Current category. This category can still include shell companies or development stage companies with little or no operations as well as companies without audited financial statements.
Companies that have submitted information no older than six months to the OTC Markets data and news service or have made a filing on the SEC’s EDGAR system in the previous six months are rated as having limited information. This tier indicates companies that are unwilling or unable to provide disclosure to the public markets. Companies in this category do not make current information available via OTC Markets disclosure and news service, or if they do, the available information is older than six months. There is a public interest concern associated with the company designated as Caveat Emptor. The OTCBB as an exchange was closed by owner FINRA. OTCBB companies are required to file timely reports to a U.
Securities that are not listed on any stock exchange nor formally quoted on OTC Markets or OTCBB are considered to be in the Grey Market. Unsolicited transactions are processed independently and not centrally listed or quoted. OTC Markets Group Inc: CEO and Executives – Businessweek”. The Pink Sheets Tries to Change Its Colors”. OTC Markets 101 – Securities Lawyer 101″. In the Pink: OTC Stocks Offer Peril Along With Potential Profit”. Archived from the original on 9 February 2012.
The OTCQX and OTCQB are finally recognized as “Established Public Markets” by the SEC”. Canadian firms try different route to U. I was an OTC MM for about 10 years ending in the late 80’s. Since then I have been strictly an investor. Since I have not been that up to date in MM rules I will only make statements that I feel fairly confident are still accurate regarding these activities. They just try to make orderly markets.