Laura Anthony

    • Member Type(s): Expert
    • Title:Founding Partner
    • Organization:Legal & Compliance, LLC
    • Area of Expertise:Securities Law

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OTC Pink Marketplace and Quotation Criteria
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Uploaded By: Laura Anthony, Esq.
Date Added: July 13, 2017
Description: OTC Pink Marketplace and Quotation Criteria- Today is the continuation in a LawCast series talking about the OTC Pink marketplace and quotation criteria. The OTC Pink, which includes the highest-risk, highly speculative securities, is further divided into three tiers: Current Information, Limited Information and No Information, based on the level of disclosure and public information made available by the company either through the SEC or posted on OTC Markets through its alternative reporting system. There are no qualitative standards beyond disclosure for OTC Pink companies, which include companies in all stages of development as well as shell and blank check entities. I have already discussed the current information and limited information levels of OTC Pink. Companies with No Information status on OTC Markets are generally delineated by a “stop” sign and do not provide any current or updated reliable public disclosure. There are a couple of additional OTC Market designations to be made aware of. The first is caveat emptor. Companies with a Caveat Emptor designation on OTC Markets are delineated with a skull and crossbones sign. These companies have raised concerns such as improper or misleading disclosures, spam campaigns, questionable stock promotion, investigation of fraudulent or other criminal activity, regulatory suspensions or disruptive corporate actions. While labeled with a skull and crossbones, a company that does not have Current Information or is not on the OTCQB will have its quote blocked on the OTC Markets website. Companies labeled as Other OTC or Grey Market are delineated by a grey yield sign. These companies do not have a current 15c2-11 and are not eligible for quotation by a market maker or broker-dealer until such time as a 15c2-11 application is made with and accepted by FINRA.
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