https://blog.otcmarkets.com/2021/01/26/transformin
Post# of 9144
(Total Views: 477)
Posted On: 02/25/2021 2:51:24 AM
https://blog.otcmarkets.com/2021/01/26/transf...c-markets/
I've mentioned this before. The continuous trend has been to stricter otc disclosure, bringing otc securities closer to the disclosure of big board exchanges, with the OTCQX begun ca 2009 having qualitative parity with big board requirements for all practical purposes for the ordinary investor.
Current plans are to require all pink stocks -with limited exceptions- to have current disclosure such as pink current stocks do.
This will gut the 'limited info' and 'no info' otc categories, forcing those companies to choose between the added expense and disclosure of the 'pink current' category, or be relegated to the 'grey' market, which is also sometimes called the 'expert' market because only accredited investors or those with a certain financial status are supposedly allowed to trade on such.
Dealers are not allowed to submit quotes on the grey market so the public is not aware of any bid or ask prices on such and to trade you simply blindly have to put in an order, not knowing what the bid or ask is.
The system- the powers that be-at least otcmarkets.com(specifically what they charge for filing fees and their disclosure and news service) benefits from the greater fees they receive.
When otc et al? imposed stricter requirements for the otcqb in 2014-2015 (depending on a companies fiscal year)- primarily a 10 grand surcharge and min bid price of one cent for the privilege of otcqb membership, lots of former otcqb companies chose to descend to the pink current ranks while remaining sec reporting.
It will be more difficult for companies to choose the descent alternative in this new choice situation.
If they want to remain available for general public access, they will have to accept the extra expenses and transition to the pink current designation-which I assume NNLX will do at a cost of maybe 5k or more extra per year.
NNLX will have to employ this info in their decision making paradigm. People are always asking for guarantees (because they want me to carry all the risk and do all the work) but I tell them the only guarantees are death and taxes.
The third alternative is for some such companies to go private.
I've mentioned this before. The continuous trend has been to stricter otc disclosure, bringing otc securities closer to the disclosure of big board exchanges, with the OTCQX begun ca 2009 having qualitative parity with big board requirements for all practical purposes for the ordinary investor.
Current plans are to require all pink stocks -with limited exceptions- to have current disclosure such as pink current stocks do.
This will gut the 'limited info' and 'no info' otc categories, forcing those companies to choose between the added expense and disclosure of the 'pink current' category, or be relegated to the 'grey' market, which is also sometimes called the 'expert' market because only accredited investors or those with a certain financial status are supposedly allowed to trade on such.
Dealers are not allowed to submit quotes on the grey market so the public is not aware of any bid or ask prices on such and to trade you simply blindly have to put in an order, not knowing what the bid or ask is.
The system- the powers that be-at least otcmarkets.com(specifically what they charge for filing fees and their disclosure and news service) benefits from the greater fees they receive.
When otc et al? imposed stricter requirements for the otcqb in 2014-2015 (depending on a companies fiscal year)- primarily a 10 grand surcharge and min bid price of one cent for the privilege of otcqb membership, lots of former otcqb companies chose to descend to the pink current ranks while remaining sec reporting.
It will be more difficult for companies to choose the descent alternative in this new choice situation.
If they want to remain available for general public access, they will have to accept the extra expenses and transition to the pink current designation-which I assume NNLX will do at a cost of maybe 5k or more extra per year.
NNLX will have to employ this info in their decision making paradigm. People are always asking for guarantees (because they want me to carry all the risk and do all the work) but I tell them the only guarantees are death and taxes.
The third alternative is for some such companies to go private.
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