What Are The Procedures To Go For Public Issue?

There are several methods to go public in the US. There are three main levels of listing:

Here are the levels of stock listing.

OTC PINK SHEETS:

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

THE OTC BB: The OTC Bulletin Board is managed by the Financial Industry Regulatory Authority (FINRA) and expects that all companies whose stock 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 fees paid to FINRA for this quotation, but maintaining a public company current with its SEC reports could cost $25,000 - $50,000 annually.

EXCHANGES:

The OTC PINK SHEETS and the OTC Bulletin Board are convenient stock markets specifically for upcoming and new companies, but clients with well known businesses will want to be on one of the developed and higher stock exchanges - Nasdaq Small-Cap, Nasdaq NMS or NYSE. Each of these stock exchanges has its own qualifications that a business must meet to be listed on the exchange. Generally the types of qualification factors they look for include asset levels, number of investors, required Board level committees, revenues, 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 exchanges usually involves charges of about hundreds of thousands of dollars.

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

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

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

3) Maximize your personal ROI as an owner by cutting down the amount of time it takes 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 firm;

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

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

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