What is the Over-the-Counter Bulletin Board?

The Over-the-Counter Bulletin Board (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) securities. An OTC equity security generally is any equity that is not listed or traded on the NASDAQ® or a national securities exchange. It has most of the perks of the bigger national exchanges like the AMEX, but businesses don’t need to have as many assets as a GM or a Microsoft to participate in the service – just the opposite. This service can function as a place to increase your company’s assets. By going public and joining the OTCBB, your company can raise up to $1 million in new capital, and at a much lower expense than by doing a conventional IPO. There’s no “magic” to the process. Because this is a smaller service, its rules are designed to accommodate smaller businesses. Your company can be listed, traded, and raise capital, all at a fraction of the cost of doing the same thing on the larger exchanges.

Because it is an SEC-regulated exchange, you will need to follow more rigorous reporting rules – mostly the same rules that firms on the AMEX and the NASDAQ follow. Companies on this exchange are subject to many of the same provisions required by the Sarbanes-Oxley Act of 2002. One provision to take note of is Section 302, which specifies the timely, full submission of required filings to the SEC or applicable regulatory authority. If you miss your filings, you can be de-listed from the OTCBB, the same thing that would happen on the AMEX, NASDAQ or NYSE. For more information on the requirements of Section 302 of the Act, please refer to the following: SEC Prepares to Implement Sarbanes-Oxley Act Requirement for CEO And CFO Certification of SEC Filings and Final Rule: Certification of Disclosure in Companies' Quarterly and Annual Reports. There are numerous white papers outlining the Sarbanes-Oxley requirements available at http://www.pubcowhitepapers.com/

If one of your goals is to graduate to the biggest trading floors in the world, a "half-step" up to the OTCBB is the smart way to get there. You can master the SEC filing, accounting and reporting procedures there, and then make an easier transition to a bigger board.

OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs).



What’s the best way get my company listed?

There are several different methods, including the conventional IPO, but the least expensive method is available in the State of Nevada. It’s called a Registration by Qualification, and is completed in five steps, broadly outlined as follows:

1. Register your corporation in Nevada. While this process is available to corporations domiciled elsewhere, Nevada’s business-friendly laws make it more cost-effective to apply as a Nevada corporation.
2. Prepare prospectus and audit. The prospectus is...

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