Listing a Penny Stock

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Stocks that do not trade on recognized national stock exchanges, such as the New York Stock exchange or the NASDAQ, trade rather in markets described as "over-the-counter" (OTC).
The OTC market is less formal than the national exchanges when it comes to matters such as listing requirements and investor information and exists primarily to give relatively new and small companies access to public investor funding. The OTC market is, in essence a collection of broker-dealers, market makers.
Penny Stock companies and investors from the public that generally interact with each other through the OTCBB or the Pink Sheets.
Subscribing brokers find the OTCBB useful to look up prices or enter quotes for the OTC securities. The OTCC is overseen rather than managed or owned by the NASD.
Companies that trade their stocks on the major national exchanges such as NASDAQ or the NYSE are required to meet minimum listing standards. There are no minimum listing standard that must be adhered to before Penny Stock shares can be listed on the OTCBB or the Pink Sheets and traded in the over-the-counter (OTC) market.
Any private company, provided they subscribe to the Over-the-Counter Bulletin Board (OTCBB) or the Pink Sheets, can sell their shares in the OTC market.
If a Penny Stock company wanted to become a publicly held company, it could do so by following one of two methods. Either the Penny Stock company can issue stock in a transaction that is registered with the SEC or register the company and its outstanding stock with the SEC.
Both methods of registration stimulate ongoing reporting duties. This means that the company must file periodic reports disclosing vital information to investors about its business, management methods and financial state.
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