Once upon a time in the world of finance there were three kingdoms the most widely recognized was also the most snobbish and wealthiest its subjects were affluent and known worldwide. Its king was NYSE (New York Stock Exchange) the king ruled proudly over his subjects.
Every brokerage firm had a stock ticker to provide their customers trade information on NYSE listed stocks.
The second kingdom was not so good, it had fewer subjects and inhabitants were much poorer than those governed by NYSE, the king was named AMEX (American Stock Exchange). They can be classified as low middle class.
Now the third kingdom was the largest of all, it's topics range from middle class to very poor, this kingdom was ruled by OTC (Over The Counter market). Some of the subjects of OTC were always looking to migrate to NYSE Amex or the stigma that is a resident of OTC escape.
A share of stock that once traded on the Pink Sheets are well known today, such as EDS and many new IPO, as well as bank and insurance companies, but you also had shares trading for a fraction of a penny.
If you would like a price on an OTC stock your broker in the pink sheets looked to see who the market makers had wanted to call, he would on the phone to a market maker and ask the person answering the phone for a quote, the person answering the phone will receive the price of a plate in front of the room and give it to the broker who asks the question, it would take some time.
Market makers quote had a boy in front of the trading room changes the sign every time a trader shouted another price, these markets accounted for 100 shares,
In those days it was possible to buy a market maker at a price and turn around and sell to another market maker at higher price because one market maker had no idea what was the market, unless a phone call. So you always found differences in the price of a stock.
Along came a knight named NASDAQ the NASD Automatic Quotation System, allows brokers to see through the computer, it gave the average market price (market average) not the best price, but it was a big step forward.
The NASDAQ stapler provide live quotes you had to hold the enter button to see the updated quote.
And eventually all the better stocks were gradually included in the NASDAQ-systems allowing the more obscure and unprofitable companies to trade on the pink sheet. And again the NASD decided to further sink the pink sheets in the land of oblivion by creating the OTC Bulletin Board.
The OTC Bulletin Board began much information of the issuer is not required, but gradually began to learn more and now they have to report and audited financial.
All this left the pink as the only market in the total disclosure darkness are the only ones not the issuer for its financial make public. Reports
But is a little light came in pink, on this day a new policy was implemented on February 15, 2005 this policy requires issuers of newly traded securities to adequate flow of information to the investing public.
This is required only of those companies listed on an unsolicited basis on the pink sheets have, and have never been listed on a stock exchange or quoted on the OTCBB.
If an issuer is listed on an unsolicited basis, this means that the NASD no market maker has cleared to bid for the security under SEC Rule 15c2-11 to enter. Instead, a real estate agent to rely on an exception to the rule, for a quotation to give it. An unsolicited customer order again This exception is used to assess the effects of new issuers trade without any disclosure to the investing public. To address this situation, in October 2004, Pink Sheets revise their policies for agents entering unsolicited quotes in a new security that has never been listed on a stock exchange or quoted on the OTCBB. They now require that prior to the publication of an unsolicited offer in the Pink Sheets for such securities, the agency must ensure that the issuer adequate current information publicly available on the pink sheets website has made. The disclosure policy is a good attempt at creating transparency of the basic information that investors earn trade in public markets.
Pink Sheets is now the obligation to extend to companies that were previously quoted. On an unsolicited basis If the companies do not face February 15, 2005, the mandatory publication they removed their displayed quote from the website.
This new policy is a big step forward for the Pink Sheets and they should be applauded for it, but I would like all companies are required to make to see. Complete disclosure of personal
If a company is unable for some reason to their finances and corporate updates disclose to the investing public then they should not be admitted to trading on a public market.
These companies operating in total darkness, the vehicles are used by stock manipulators to scam the investing public, even though the Pink Sheets this giant step they need to remove all non-disclosure of companies in the public market have taken.
I'm not sure of the pink sheets have the power to do this, but does SEC, and the SEC is the agency responsible for the protection of the investing public.
Let us congratulate we have in Genesis Corporate Advisors change our politics Pink sheet for this change in policy and hope that they will continue to tighten their standards, as a direct result of this policy is not bringing any company public to the Pink sheets.
With immediate effect, we will consider candidates for the pink sheets, but our preference will remain the OTC Bulletin Board, because we want as much transparency as possible.
To viable healthy market you should have prepared investors with access to timely and accurate information.
No comments:
Post a Comment