There are several modes to go public in the US. There are three major stages of listing:
Here are the levels of quotation listing.
OTC PINK SHEETS:
The most well-known quotation service for over the counter securities usually called "the pinks". There are technically no prerequisites for reports or audited financials on the pinks, though, the pinks have put into operation their own voluntary reporting system and enforce it by publishing symbols to represent the level of disclosure each organization is subscribing to. To publish voluntary information requires charges of about $5000 a year.
THE OTC BB: The OTC Bulletin Board is managed by the Financial Industry Regulatory Authority (FINRA) and mandates that all companies whose equity is exchanged on the OTC Bulletin Board maintain their current reporting status with the Securities and Exchange Commission (SEC), which includes current audited financial statements. There are no charges paid to FINRA for this quotation, but keeping a public company current with its SEC reports can easily cost $25,000 - $50,000 a year.
EXCHANGES:
The OTC PINK SHEETS and the OTC Bulletin Board are convenient stock markets particularly for upcoming and new companies, but clients with flourishing businesses will want to be on one of the mature and higher stock markets - Nasdaq Small-Cap, Nasdaq NMS or NYSE. Each of these exchanges has its own qualifications that a firm must meet to be listed on the exchange. Usually the types of qualification factors they look for include asset levels, number of financial partners, required Board level committees, incomes, and market capitalization. In addition all exchanges mandate the company to maintain a current reporting status with the Securities and Exchange Commission (SEC). Listing on the stock markets usually involves fees of nearly hundreds of thousands of dollars.
For a US company a quotation on the US stock markets strengthen points. For Example, a quotation is a method to:
1) Grow your company quicker and make it more successful by increasing your ability to attract "mergers", "acquisitions" and "strategic partners;
2) Develop your company faster and make it more powerful by increasing its ability to compete for large corporate deals;
3) Leverage your personal ROI as an owner by minimizing the amount of time it takes to make money on your investment, along with increasing the valuation of your company, as well as, changing the liquidity of your asset to a much more liquid form than that of a private company;
4)Raise money more quickly and cheaper by increasing the "liquidity" factor for your investors
Now most of these factors are for firms going public from scratch. For those of you wanting to buy a shell corporation (public shell), to do mergers, then you might want to look at changing a quotation as above. For more tips on this topic try googling phrases like "mergers companies" or "reverse mergers".
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