The “Over-the-Counter” Markets Group (formerly called “Pink Sheets”) provides liquidity and price information for approximately 10,000 OTC securities.  Like the DTC, the OTC is headquartered in New York City.  The OTC Markets Group organizes trades into three categories to inform investors of opportunities and risks. In the recent years, the Over the Counter Market has developed several tiers of quotation with increasingly higher reporting requirements: Pink, OTCQB, and OTCQX,.

Although the OTC Market Group does not require companies to file with the SEC in order to be quoted on the platform, many still file with the SEC.  Companies quoted on OTC Markets range from established foreign firms to extremely small U.S. companies.

For smaller public companies, the most common market for the trading of their securities is on the over-the-counter (OTCmarkets. One of the reasons why a quotation on the OTC markets is advantageous for smaller public companies is due to the lower standards from those required by major exchanges.

It’s challenging for small public companies to trade on the OTC Market due to constantly changing regulatory environment.  At PEARSON BUTLER Law, our securities law attorneys strive to keep abreast of these changes so that our clients may as well.  We ensure that clients receive quality legal service by limiting the number of assignments we accept at any given time.  We work well with entrepreneurs and business owners because we understand their need to have experienced counsel to stay current with state and federal securities and regulations, complete mergers and acquisitions, and comply with financial industry reporting requirements.

Other Securities Law Services Available

At PEARSON BUTLER Law, our securities lawyers assist clients them in the following areas:

Contact a Securities Attorney

For more information on OTC Market Compliance, contact a securities attorney at PEARSON BUTLER Law who can help with OTC Market compliance,  DTC eligibility, securities arbitration, securities transactions, or recovery of investment losses by calling 801.495.4104.