OTC Market tiers OTC Markets Group established a

New Post Public Reply Private Reply Replies (0) Message Board

Feb 5, 2013 at 9:17 AM

OTC Market tiers

OTC Markets Group established a categorization system to indicate the level of financial and corporate disclosure provided by the companies using its quotation system. Apart from the OTCQX tier, the disclosure categories do not signify issuer quality or merit of any security. Categorization is based on the level and timeliness of a company's disclosure and OTCQB and any of the OTC Pink categories can include both high quality as well as speculative, distressed, or questionable companies. Investors are encouraged to use caution when considering many these companies for investment[10].

OTCQX

The OTCQX tier includes both large cap multinational and domestic growth companies. OTCQX companies are required to have the highest financial and operational standards in the over-the-counter equity market[12] . To be traded on this tier, companies undergo a qualitative review by OTC Markets Group[13]. Companies are not required to be registered with or reporting to the U.S. Securities and Exchange Commission (SEC), but must post financial information with OTC Markets Group. In addition, US companies must be ongoing operations (no shells etc) and may not be in bankruptcy, while foreign issuers must meet the requirements of qualified Non-US exchanges. [9][14]. Additional oversight of OTCQX securities is provided by requiring every issuer to be sponsored by approved third-party investment banks or law firms, called Principal American Liaison (PAL) for non-US issuers and Designated Advisors For Disclosure (DADs) for US issuers[12][9][14].

OTCQB

OTCQB companies must be registered with and reporting to the SEC or a U.S. regulatory agency. There are no financial or qualitative standards to be in this tier.

OTC Pink

OTC Pink is an open marketplace that has no financial standards or reporting requirements. The stock of companies in the OTC 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. OTC Pink securities range from shells and highly speculative development stage companies to international names.

OTC Pink Current Information

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 current information. This category includes shell companies or development stage companies with little or no operations as well as companies without audited financial statements.

OTC Pink Limited Information

Companies that are unwilling or unable to meet OTC Markets' Guidelines for Providing Adequate Current Information but have submitted some but not all of current information required are rated as having limited information. These are often companies with financial reporting problems, economic distress, or in bankruptcy.

OTC Pink No 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. This category includes defunct companies that have ceased operations as well as 'dark' companies with questionable management and market disclosure practices. Securities of publicly traded companies that are not willing to provide information to investors are considered highly risky.

Caveat emptor - buyer beware

There is a public interest concern associated with the company. This may include a spam campaign, stock promotion or known investigation of fraudulent activity committed by the company or insiders. During a spam campaign, any stock that is not in the Current Information category will also have its quotes blocked on otcmarkets.com.

Link to view footnotes..

http://en.wikipedia.org/wiki/OTC_Markets_Grou...anadian-11

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Empower Brokerage Draws Talent to North Texas Job Fair

Shakeup at the North Texas Job Fair Slinging insurance ain't everyone's dream gig, but some folks find their calling where money meets meaning. The North Texas Job Fair, already known for its heavy foot traffic, saw a unique player strutting their stuff this year—Empower Brokerage. This family-owned insurance agency wasn't just slinging corporate pitch; they offered a...

Ameren Ups Earnings Guidance Amid Strong Q3 2026

A Boost in Earnings During a Hot Third Quarter Ameren Corporation, ticker NYSE: AEE, just released its third quarter 2026 results, and things are looking brighter on the earnings front. We're seeing a bump here, with GAAP diluted EPS hitting $2.42 compared to the $2.35 from the year before. Adjusted EPS follows suit, jumping from $2.17 in 2025 to that same $2.42 mark now....

Minesto's Tidal Project Nets EU Recognition & Funding

Tapping Into the Tides: Minesto's Strategic Leap Table flipping news coming in from Gothenburg! Minesto—the ocean energy trailblazer—is making waves again, snagging the EU's STEP Seal for its Euro Dragon Farm project in Ireland. You couldn't ask for a better boon from Brussels—they're sinking a cool EUR 20.2 million in grant funds into this tidal energy venture....

Dahua Technology Showcases Smart City AI at SCEWC 2026

AIoT Innovations Unveiled at SCEWC 2026 Once in a while, something comes along that makes you sit up and pay attention, and this time it's Dahua Technology. Picture a sprawling metropolis where smart tech not only keeps the wheels turning but actually makes life better. That's the ambition Dahua laid out during the Smart City Expo World Congress 2026 in Barcelona,...

Yesway's Festive Campaign Drives Holiday Sales Surge

A Holiday Extravaganza in Convenience Retail Here's the deal: Yesway's pulling out all the stops this holiday season, and they're not just offering cheap hotdogs or knocking a nickel off the gas. They're diving into some fiery New Mexico-inspired festivities with their latest campaign, “Red or Green…or Christmas?” It's like a candy cane made of salsas—just in time...

Sasken's Role in Shaping Auto Software Evolution

Sasken's Bold Step Into Automotive Future Ah, nothing quite like the automotive industry trying to catch up with the tech world. That's where Sasken Technologies Ltd. stands, hand in hand with a major European automaker, rolling out the next phase of telematics control units (TCUs). This endeavor is a multi-year gig, not your fly-by-night partnership, mind you. It's all...

Priority Software Acquires Fireberry to Boost AI Vision

Another Big Play in the AI-Driven Business Landscape Here we go, folks. Priority Software just made a move that's gonna shake up the AI business management scene. They’ve acquired Fireberry, a CRM company that's seen some success in the AI world. Now, this ain't just some small-scale adjustment; it's an all-in bet on AI to bolster their existing platforms. What's...

MPE Partners' Strategic Play: Sun-Tech Acquisition Details

A Deal to Illuminate Another cloudy day in the world of mergers and acquisitions, folks? Not this time. We're taking a nice spotlight to an acquisition that could mean brighter days ahead. MPE Partners, those guys who love nurturing entrepreneur-driven firms, have joined hands with Intermatic to snatch up Sun-Tech, a stalwart in outdoor lighting controls. There’s no...

Plasma Proteomics May Predict Immunotherapy Resistance

Sifting Through Proteins: A Step Toward Precision Medicine In the world of lung cancer, the stakes are high, and any breakthrough is a glimmer of hope. OncoHost turned heads with their new research presented at the ISLB 2026, showing plasma proteomics' potential in detecting immunotherapy resistance for advanced non-small cell lung cancer (NSCLC). It's not just another...

RetailMeNot Boosts Holiday Budget with Cash Back Extravaganza

This Isn't Your Grandma's Cash Back Here we go, folks! RetailMeNot is rolling out the red carpet for budget-conscious gift givers with its National Cash Back Day. From November 5–7, over 3,500 retailers, including big shots like Walmart and Ulta, are letting you scoop up to 30% in cold, hard cash back. If you ever needed a reason to start your holiday shopping early,...