Shaping the Future of Shareholder Meetings: A Tug of War Between Political Parties (2024)

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The OTC Markets Group, formerly known as the National Quotation Bureau (NQB), is an organization that facilitates the trade of Over The Counter (OTC) stocks and other securities. OTC Markets maintains its own tiers and listing requirements for each. An Over The Counter stock is a financial security that does not trade on a formal stock exchange. Rather, these securities are traded through a dealer network such as OTC Market Group which include electronic quoting and lower listing requirements than a formal exchange. OTC securities are highly regulated securities by FINRA and the SEC.

The OTC Markets Group was formally established in its present form in 2010, and provides information on over 10,000 OTC securities. Presently, a network of over 100 established broker-dealers (institutions that act as a financial securities broker and/or dealers) trade on the OTC Markets system.

The OTC Markets Group platform is segregated into 3 distinct market tiers: the OTCQX, the OTCQB, and the Pink. Each of these different tiers is separated based on perceived risk levels, which depend on the quality and regularity of a listed company's reporting information and disclosures.

OTCQX

The OTCQX, branded as the 'OTCQX, The Best Market,' has the most stringent listing standards of the three OTC Markets.

Noteable OTCQX companies include AcuityAds Hldgs Inc. (OTCQX: ACUIF), Nouveau Monde Graphite Inc. (OTCQX: NMGRF), and CV Sciences, Inc. OTCQB. The OTCQX has different eligibility requirements depending on whether a firm is international, U.S. based, or a bank.

OTCQX U.S. Standard Requirements

Initial

Ongoing

Penny Stock Rule

Meet one of the following exemptions detailed below:

Net Tangible Assets:
$5mm: Less Than 3 Years Operations
$2mm: 3+ Years Operations

OR

Revenue:
$6 million average for last 3 years

OR

Bid:
$5; and
One of the below:
Net Income: $500,000
Net Tangible Assets: $1mm
Revenues: $2mm
Total Assets: $5mm

Bid Price

$0.25

$0.10

Market Cap

$10mm

$5mm

Price Quotes by Market Makers on OTC Link ATS

1

2 (within 90 days)

Shareholders

50 beneficial shareholders each owning at least 100 shares

50 beneficial shareholders each owning at least 100 shares


OTCQX Premier Requirements

Initial

Ongoing

Penny Stock Rule

Meet one of the following exemptions detailed below:

Net Tangible Assets:
$2mm

OR

Revenue:
$6 million average for last 3 years

Bid Price

$4.00

$1.00

Stockholders Equity

$4mm

$4mm

Price Quotes by Market Makers on OTC Link

1

4 (within 90 days)

Public Float 500,000 shares 500,000 shares

Shareholders

100 beneficial shareholders each owning at least 100 shares

100 beneficial shareholders each owning at least 100 shares

Operating history

3 years

Must meet one of the following standards:
Market Value Standard:

Market Value of Public Float

$15mm $15mm

Market Capitalization

$50mm $35mm

OR

Net Income Standard:

Market Value of Public Float

$1mm $1mm

Net Income

$750,000 $500,000

Market Capitalization

$10mm $5mm

OTCQX U.S. Banks Standard Requirements

Initial

Ongoing

Penny Stock Rule

Meet one of the following exemptions detailed below:

Net Tangible Assets:
$5mm: Less Than 3 Years Operations
$2mm: 3+ Years Operations

OR

Revenue:
$6 million average for last 3 years

OR

Bid:
$5; and
One of the below:
Net Income: $500,000
Net Tangible Assets: $1mm
Revenues: $2mm
Total Assets: $5mm

Bid Price

$1.00

$1.00

Total Assets $100mm $100mm

Market Cap

$10mm

$5mm

Price Quotes by Market Makers on OTC Link

1

2 (within 90 days)

Shareholders

50 beneficial shareholders each owning at least 100 shares

50 beneficial shareholders each owning at least 100 shares


OTCQX Banks Premier Requirements

Initial

Ongoing

Penny Stock Rule

Meet one of the following exemptions detailed below:

Net Tangible Assets:
$2mm

OR

Revenue:
$6 million average for last 3 years

Bid Price

$4.00

$1.00

Total Assets

$100mm

$100mm

Stockholders Equity

$4mm

$4mm

Price Quotes by Market Makers on OTC Link

1

4 (within 90 days)

Shareholders

100 beneficial shareholders each owning at least 100 shares

100 beneficial shareholders each owning at least 100 shares

Operating history

3 years

Must meet one of the following standards:
Market Value Standard:

Market Value of Public Float

$15mm $15mm

Market Capitalization

$50mm $35mm

OR

Net Income Standard:
Market Value of Public Float $1mm $1mm
Net Income $750,000 $500,000

Market Capitalization

$10mm $5mm

See our full OTCQX listing requirements and standards to get listed onto OTCQX.

Shaping the Future of Shareholder Meetings: A Tug of War Between Political Parties (2)

OTCQB Requirements

OTCQB offers early stage to fully reporting companies the benefits of being a publicly traded company. Noteable OTCQB companies including Fannie Mae (OTCQB: FNMA), Freddie Mac (OTCQB: FMCC), and CV Sciences, Inc. OTCQB

Eligibility Requirements:

  • Comply with SEC Reporting (Exchange Act reporting standard or Regulation A), International Reporting, Bank Reporting, or OTC Alternative Reporting Guidelines as found here.
  • Audited annual company financials by a PCAOB auditor according to U.S. GAAP
  • Number of existing shareholders meet trading requirements
  • Non-shell companies only
  • Either listed on a Qualified Foreign Exchange or be a U.S. reporting company (SEC, ARS, or U.S. Bank)
  • Not be subject to bankruptcy or reorganization proceedings.
  • Bid Price meet trading requirements
  • Free trading shares and Public Float meet trading requirements
  • Utilize a transfer agent that participates in the Transfer Agent Verified Shares Program, such as Colonial Stock Transfer.

Get Started with our OTCQB Listing Consulting Services to learn more about these requirements. Also, learn about Colonial's Transfer Agent Services

OTCQB U.S. Standard Requirements

Initial

Ongoing

Bid Price

$0.01 (30 calendar days before applying not applicable if filing Form 211, company is traded on Qualified Foreign Exchange at price equal to or greater than $0.01)

$0.01 (on at least one of the prior thirty calendar days)

Public Float

10% of total issued and outstanding shares

Same

Shareholders

50 beneficial shareholders each owning at least 100 shares

Same

Post-qualification Requirements (in addition to those in the chart):

  • Compliance with standards
  • Compliance with Federal and State securities laws
  • Payment of fees
  • Responding to OTC's requests
  • Meet on-going disclosure requirements
  • Maintain a verified OTC profile
  • Disclosure of convertible debt arrangements to the SEC EDGAR system or OTC Disclosure and News Services
  • Annual certification confirming company profile data
  • Interim event disclosure
  • Non-shell companies only

If you meet the standards and requirements above, we can help you with your OTCQB listing. Please contact us.

OTC Pink

Formerly known as 'The Pink Sheets' the OTC Market Group's 'Pink' is the least regulated of the three market tiers. Branded as 'Pink, the requirements for getting listed on the Pink are as follows:

  • File a Form 15c2-11 to FINRA. In order for a broker-dealer to submit your Form 15c2-11, they will most likely require your company to meet certain standards not seen here. Our team can provide guidance on this.
  • Company profile has been verified through OTCIQ
  • Attorney letter if company is not audited

Get Started with our OTC Pink Listing Consulting Services to learn more about these requirements. Also, learn about Colonial's Transfer Agent Services

Companies that trade on the Pink include penny stocks, shells, distressed companies, delinquent companies, and companies that have limited their disclosure.

Listing Fees

The application and annual fees for each of the OTC tiers are listed below:

Application Fees

OTCQX

OTCQB

OTC Pink

Application Fee

$5,000

$5,000

$1,000

Annual Fee

$23,000

$14,000 (or semi-annually $7,500)

$5,000

How to Apply

We can help guide you through the process on making your OTC listing including:

  • Provide complete OTC listing consultation and support until trading
  • Help you meet OTC listing requirements and compliance
  • Completing application and materials required for listing
  • Work with stakeholders, auditors, and legal counsel to acheive OTC listing
  • Public company consulting after you are listed

Get Started with your OTC Listing

Ready for your OTC listing? Start by completing the form below.

OTC Transfer Agent Services

As a full-service transfer agency with over 30 years of industry experience, Colonial Stock Transfer can assist your firm with getting listed on the OTC Market Group's trading platform. To speak with a professional today or learn more about Colonial Stock Transfer, please contact us.

Shaping the Future of Shareholder Meetings: A Tug of War Between Political Parties (2024)

FAQs

How and why political parties developed out of conflicts? ›

Political factions or parties began to form during the struggle over ratification of the federal Constitution of 1787. Friction between them increased as attention shifted from the creation of a new federal government to the question of how powerful that federal government would be.

What are changes or shifts in the parties and the coalitions that make up the parties called? ›

A political realignment, often called a critical election, critical realignment, or realigning election, in the academic fields of political science and political history, is a set of sharp changes in party ideology, issues, party leaders, regional and demographic bases of power of political parties, and the structure ...

Who formed the first organized political party in American history? ›

It featured two national parties competing for control of the presidency, Congress, and the states: the Federalist Party, created largely by Alexander Hamilton, and the rival Jeffersonian Democratic-Republican Party, formed by Thomas Jefferson and James Madison, usually called at the time the Republican Party (which is ...

What is the best definition of politics? ›

Politics (from Ancient Greek πολιτικά (politiká) 'affairs of the cities') is the set of activities that are associated with making decisions in groups, or other forms of power relations among individuals, such as the distribution of resources or status.

Why does conflict occur between two parties? ›

Conflicts may arise because of goal incompatibility, barriers to goal achievement, competition for use of limited resources, inter-personal differences, project priorities, or other causes related to research activities (EXHIBIT 12). The underlying cause of most conflicts is lack of communication.

What is the main reason why political parties exist today? ›

The diverse conditions of historical eras, and differing ideologies of America's people, gave rise to various political parties, founded to advance specific ideals and the candidates who represented them.

What is it called when two political parties work together? ›

Bipartisanship, sometimes referred to as nonpartisanship, is a political situation, usually in the context of a two-party system (especially those of the United States and some other western countries), in which opposing political parties find common ground through compromise.

What were the two main issues that divided the early political parties? ›

Banking was the first dividing issue, with Federalists supporting the chartering of a national bank and the Democratic Republicans opposing it. The division into parties was also amplified by differing responses to the Jay Treaty negotiated between the United States and Great Britain in 1794.

What is the purpose of a coalition? ›

A coalition is formed when two or more people or groups temporarily work together to achieve a common goal. The term is most frequently used to denote a formation of power in political or economical spaces.

Which is the largest and strongest political party in the world? ›

Parties with over 50 million members
RankNameCountry
1Bharatiya Janata Party Indian People's PartyIndia
2Chinese Communist PartyChina
3Indian National CongressIndia

What are the 2 main political parties in the United States? ›

The electoral system in the U.S. is called a two-party system. That means that two parties dominate the political field in all three levels of government. In the U.S. these two parties are the Republican Party and the Democratic Party.

What are the two major political parties in the US? ›

Since the 1850s, the two largest political parties have been the Democratic Party and the Republican Party—which together have won every United States presidential election since 1852 and controlled the United States Congress since at least 1856.

What are some political problems? ›

  • Anti-Corruption and Transparency.
  • Arms Control and Nonproliferation.
  • Climate and Environment.
  • Climate Crisis.
  • Combating Drugs and Crime.
  • Countering Terrorism.
  • Cyber Issues.
  • Economic Prosperity and Trade Policy.

What are the four types of politics? ›

The main types of political systems recognized are democracies, totalitarian regimes and, sitting between these two, authoritarian regimes with a variety of hybrid regimes. Modern classification system also include monarchies as a standalone entity or as a hybrid system of the main three.

Why politics is the art of government? ›

(Heywood, 1997) Government is closely related to politics. To study politics is in essence to study government or more broadly, to study the exercise of authority. Politics is the art of government, the exercise of control within the society through the making and enforcement of collective decisions.

Why and how did political parties develop? ›

In the 1790s and early 1800s, senators divided into rival parties based on support of and opposition to the policies of presidents George Washington and John Adams, especially regarding foreign relations with Great Britain and France and the role of the federal government.

What was the main cause of the development of the two party political system in the United states? ›

Banking was the first dividing issue, with Federalists supporting the chartering of a national bank and the Democratic Republicans opposing it. The division into parties was also amplified by differing responses to the Jay Treaty negotiated between the United States and Great Britain in 1794.

What caused political parties to emerge quizlet? ›

How did the two political parties emerge? Two parties emerged when people sided Alexander Hamilton's and Thomas Jefferson's opinions. The parties formed because the two had very different beliefs that benefitted the two main industries in the nation.

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