- This topic has 2 replies, 3 voices, and was last updated 1 year, 11 months ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
Trade Finance Forum › Forums › Market Regulations › Compliance › List the other options to follow after getting delisted from Nasdaq.
List the other options to follow after getting delisted from Nasdaq.
There are two main markets where a stock might trade after it is formally delisted in the US: the pink sheets and OTCBB (over-the-counter bulletin board). The FINRA (Financial Industry Regulatory Authority) provides an electronic trading facility called the Over-the-Counter Bulletin Board (OTCBB). There is hardly any regulation for OTCBB. If a company’s financial statements are current, it will be able to trade here. Even riskier than the OTCBB is the pink sheets, a quotation service. It does not require organizations to register with the Securities and Exchange Commission (SEC) or keep up with their regular filings. The equities listed on the pink sheets involve a lot of speculation. Delisting doesn’t indicate that a business will file for bankruptcy. A firm can be delisted and yet be successful, just as many private businesses thrive without the stock market.
Over the counter trading refers to stock trading that takes place off a major exchange (OTC). This indicates that the stock trades are carried out by people connected by phone and computer networks. Organizations listing themselves on the OTCBB as more extensive exchanges may delist because they cannot comply with its listing standards. Any business that wants to list on the OTCBB must adhere to the listing standards and keep up with SEC reporting obligations. A firm listed on the Pink Sheets are exempt from the SEC’s filing requirements and minimum standards. Additionally, a business may decide to test the waters on the OTCBB as a stepping stone before attempting to fulfill the leading exchanges’ first listing requirements if it cannot achieve those standards. In contrast, the businesses listed on the Pink Sheets are typically penny stocks and are frequently the subjects of price manipulation. They should only be bought after a thorough investigation and with the utmost caution.