OTC listing requirements govern what’s able to be listed on the OTC exchange. When a company hasn’t met the NYSE requirements, they may find luck on another exchange. Since their requirements may differ, it can be worth checking if you’ve struck out there. Fortunately, the SEC and FINRA still regulate the OTC exchange. So, nobody has to worry about fraud if they’ve listed their company there.
What Are the OTC Listing Requirements?
OTC Market Group sets their own requirements, governing what’s allowed on their exchange. Currently, they’ve limited new entrants according to their net tangible assets. Also, they split applicants up by how long they’ve been doing business. If a company hasn’t been around for more than 3 years, there are stricter requirements. So, they have to maintain a balance greater than $5 million to qualify. But, if they’ve been around for more than 3 years, things are different. In that case, they only have to maintain a balance greater than $2 million.
Are There Any Other Requirments to Be Listed on the OTC Exchange?
One of the only things they’ve put in their bylaws is a rule concerning annual revenue. Unless a company brings in more than $500,000 each year, they’re not able to go on their exchange. So, that’s worth considering if your company’s revenues aren’t the strongest.
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