Our Three Tiered Marketplaces
Our Open, Transparent and Connected financial marketplaces provide investors with the information necessary to intelligently analyze, value and trade 10,000 U.S. and global securities through the broker of their choice.
To create clarity in the investment process, we organize these securities into three tiered marketplaces - OTCQX, OTCQB and OTC Pink - based on the quality and quantity of information the companies make available.
The OTCQX® marketplace offers the best informed and most efficient trading for U.S. and global companies. To qualify for the OTCQX marketplace, companies must meet high financial standards, be current in their disclosure, and be sponsored by a professional third-party advisor. Designed for the most reputable, liquid and investor-friendly companies, OTCQX ensures that investors have the information necessary to intelligently analyze, value and trade their securities.
The OTCQB® marketplace offers informed trading for securities for smaller or developing companies that are reporting to a U.S. regulator (SEC, Bank, or Insurance). Since OTCQB has no minimum financial standards, it includes shells and penny stocks that are current in their disclosure to regulators.
The OTCQB marketplace has effectively replaced the FINRA operated OTC Bulletin Board (OTCBB) as the primary market for SEC and bank reporting securities that trade off the exchanges.
The OTC Pink® marketplace offers trading in a wide spectrum of equity securities through any broker. This marketplace is for all types of companies that are there by reasons of default, distress or design, which is why they are further sub-categorized by the levels of information that they provide.
Companies that follow the International Reporting Standard or the Alternative Reporting Standard by making filings publicly available through the OTC Disclosure & News Service pursuant to OTC Pink Basic Disclosure Guidelines are designated as OTC Pink Current Information. The Current Information category is based on the level of disclosure and is not a designation of quality or investment risk. This category includes shell or development stage companies with little or no operations as well as companies without audited financials and as such should be considered extremely speculative by investors.
Designed for companies with financial reporting problems, economic distress, or in bankruptcy to make the limited information they have publicly available. The Limited Information category also includes companies that may not be troubled, but are unwilling to provide disclosure pursuant to OTC Pink Basic Disclosure Guidelines. Companies in this category have limited financial information not older than six months available on the OTC Disclosure & News Service or have made a filing on the SEC's EDGAR system in the previous six months.
Indicates companies that are not able or willing to provide disclosure to the public markets - either to a regulator, an exchange or OTC Markets Group. Companies in this category do not make Current Information available via OTC Markets Group's News Service, or if they do, the available information is older than six months. This category includes defunct companies that have ceased operations as well as 'dark' companies with questionable management and market disclosure practices. Publicly traded companies that are not willing to provide information to investors should be treated with suspicion and their securities should be considered highly risky.
Other Marketplace Designations
Buyer Beware. There is a public interest concern associated with the company, security, or control person which may include but is not limited to a spam campaign, questionable stock promotion, investigation of fraudulent or other criminal activity, regulatory suspensions, or disruptive corporate actions. During the time it is labeled Caveat Emptor, any stock that is not in OTC Pink Current Information or OTCQB will also have its quotes blocked on www.otcmarkets.com.
There are no broker-dealers quoting this security. It is not listed, traded or quoted on any U.S. stock exchange or on any of the OTCQX, OTCQB or OTC Pink marketplaces. Trades in grey market stocks are reported by broker-dealers to their Self Regulatory Organization (SRO) and the SRO distributes the trade data to market data vendors and financial websites so investors can track price and volume. Since grey market securities are not traded or quoted on an exchange or inter-dealer quotation system, investor's bids and offers are not collected in a central spot so market transparency is diminished and Best Execution of orders is difficult.