What Are The Procedures To Go Public?

There are several ways to go public in the US. There are actually three major levels of listing:

Here are the levels of stock listing.

OTC PINK SHEETS:

The oldest quotation service for over the counter financial instruments usually called "the pinks". There are technically no requirements for reports or audited financials on the pinks, though, the pinks have instituted their own voluntary reporting system and implement it by publishing symbols to represent the level of disclosure each company is subscribing to. To publish voluntary details requires fees of around $5000 a year.

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

EXCHANGES:

The OTC PINK SHEETS and the OTC Bulletin Board are convenient stock markets especially for upcoming and new companies, but clients with well established businesses will try to be on one of the mature and higher stock exchanges - Nasdaq Small-Cap, Nasdaq NMS or NYSE. Each of these stock exchanges has its own qualifications that a company must meet to be listed on the exchange. Generally the types of qualification factors they look for include asset levels, number of shareholders, required Board level committees, revenues, and market capitalization. In addition all exchanges require the company to have a current reporting status with the Securities and Exchange Commission (SEC). Listing on the exchanges usually involves charges in the range of hundreds of thousands of dollars.

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

1) Grow your company quicker and make it more powerful by increasing your ability to invite "mergers", "acquisitions" and "strategic partners;

2) Grow your company faster and make it more powerful by improving its ability to compete for large corporate contracts;

3) Maximize your personal ROI as an owner by decreasing the amount of time it takes to make money on your investment, as well as increasing the value of your company, as well as, changing the liquidity of your asset to a much more liquid form than that of a private firm;

4)Raise money faster and cheaper by improving the "liquidity" factor for your shareholders

Now most of these considerations are for firms going public from scratch. For those of you looking to invest in a shell corporation (public shell), to do mergers, then you might want to consider changing a quotation as stated above. For more information on this subject try googling phrases like "mergers companies" or "reverse mergers".

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