There are various ways to go public in the US. You can find three main grades of listing:
Here are the levels of stock listing.
OTC PINK SHEETS:
The oldest quotation service for over the counter financial instruments usually referred to as "the pinks". There are technically no prerequisites for reports or audited financials on the pinks, but, the pinks have instituted their own voluntary reporting system and enforce it by publishing symbols to indicate the level of disclosure each firm is subscribing to. To publish voluntary details requires fees of around $5000 a year.
THE OTC BB: The OTC Bulletin Board is operated by the Financial Industry Regulatory Authority (FINRA) and mandates that all companies whose equity is traded on the OTC Bulletin Board keep their current reporting status with the Securities and Exchange Commission (SEC), which needs current audited financial statements. There are no cost paid to FINRA for this quotation, but maintaining a public company current with its SEC reports can cost $25,000 - $50,000 annually.
EXCHANGES:
The OTC PINK SHEETS and the OTC Bulletin Board are viable stock markets particularly for budding and new companies, but clients with well established businesses will prefer to be on one of the developed and higher equity markets - Nasdaq Small-Cap, Nasdaq NMS or NYSE. Each of these stock exchanges has its own qualifications that a company must meet to be listed on the exchange. Generally the types of qualification variables they look for include asset levels, number of financial partners, required Board level committees, incomes, and market capitalization. In addition all exchanges require the company to keep a current reporting status in the Securities and Exchange Commission (SEC). Listing on the equity markets usually involves charges in the range of hundreds of thousands of dollars.
For a US company a listing on the US stock markets leverage points. For Example, a quotation is a method to:
1) Grow your company easier and make it more powerful by increasing your ability to bring in "mergers", "acquisitions" as well as "strategic partners;
2) Expand your company faster and make it more powerful by improving its ability to compete for large corporate contracts;
3) Maximize your personal return on investment as an owner by minimizing the amount of time it requires to make money on your investment, as well as increasing the valuation of your company, as well as, converting the liquidity of your asset to a more liquid form than that of a private firm;
4)Raise money faster and cheaper by improving the "liquidity" factor for your investors
Now most of these factors are for organizations going public from scratch. For those of you looking to buy a shell corporation (public shell), to try mergers, then you might want to decide changing a quotation as stated above. For more information on this subject try googling terms like "mergers companies" or "reverse mergers".
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