What Are The Modes To Go Public?

There are various methods to go public in the US. There are three main stages of listing:

Here are the levels of stock listing.

OTC PINK SHEETS:

The most well-known quotation service for over the counter financial instruments usually referred to as "the pinks". There are technically no requirements for reports or audited financials on the pinks, but, the pinks have established their own voluntary reporting system and enforce it by publishing symbols to indicate the level of disclosure each organization is subscribing to. To publish voluntary particulars requires charges of around $5000 a year.

THE OTC BB: The OTC Bulletin Board is operated by the Financial Industry Regulatory Authority (FINRA) and requires that all companies whose equity is exchanged on the OTC Bulletin Board maintain their current reporting status with the Securities and Exchange Commission (SEC), which needs current audited financial statements. There are no charges paid to FINRA for this quotation, but having a public company current with its SEC reports can easily cost $25,000 - $50,000 annually.

EXCHANGES:

The OTC PINK SHEETS and the OTC Bulletin Board are viable stock markets especially for budding and new companies, but clients with well known businesses will want to be on one of the developed and higher stock markets - Nasdaq Small-Cap, Nasdaq NMS or NYSE. Each of these stock exchanges has its own qualifications that a firm must meet to be listed on the exchange. Generally the types of qualification variables they look for include asset levels, number of shareholders, required Board level committees, incomes, and market capitalization. In addition all exchanges want the company to maintain a current reporting status in the Securities and Exchange Commission (SEC). Listing on the stock markets usually involves expenses of nearly hundreds of thousands of dollars.

For a US company a listing on the US stock markets leverage points. For Example, a quotation is a way to:

1) Grow your company easier and make it more strong by increasing your ability to attract "mergers", "acquisitions" as well as "strategic partners;

2) Develop your company faster and make it more powerful by developing its ability to compete for large corporate deals;

3) Maximize your personal return on investment as an owner by decreasing the amount of time it requires to make money on your investment, and also increasing the valuation of your company, as well as, converting the liquidity of your asset to a much more liquid form than that of a private business;

4)Raise money more quickly and cheaper by improving the "liquidity" factor for your investors

Now most of these considerations are for organizations going public from scratch. For those of you seeking to buy a shell corporation (public shell), to try mergers, then you might want to look at changing a quotation as mentioned above. For more tips on this subject try googling terms like "mergers companies" or "reverse mergers".

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