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Foreign Companies

Lately, we are getting many inquiries about dual listing or to list foreign companies either through IPO or RTO on OTCmarket. What are the benefits for foreign companies to be listed on OTC markets and how they can do that?  Is it an easy procedure, and what are the conditions? What is the main reason for companies that are listed on qualified foreign exchanges to trade on OTC markets? We are here to cater to your questions by providing you with the right answers. The first thing we need to start with is that this market is a global market. Only that fact gives you countless opportunities. To be listed on Wall Street which represents a vital center of global finance, for early-stage growth companies, and having access to US investors can bring a significant competitive advantage. It is appropriate for small businesses due to its regulatory structure, which gives better transparency and accessibility to a bigger pool of less risk-averse and more active investors. This is import...

Company Disclosures

When we speak about disclosures and what they represent in financial terms, that actually refers to providing the public with all relevant information about a company on time.  So relevant information includes facts, figures, dates, procedures, innovation, etc, which means any information regarding a company that can probably impact an investor’s decision. As a result, it is necessary to comprehend that public company directors and officers are in charge of company disclosures and securing investors with complete and valid information. Access to material info enables investors to make information-based investment decisions, which is vital for efficient market pricing and on which state and federal securities are based.  Anytime new stocks are issued to the public, the SEC requisite disclosures of relevant financial and business info to possible investors, with exemptions provided for private placements and small issues. Integrated disclosure structure is the name give...

Gypsy Swaps

The term known as a gypsy swap is a method of raising capital that involves persuading existing shareholders to exchange their free-trading, common stock for a restricted one. Gypsy Swap is a transaction that has been in practice by stock promoters for many years. The SEC's view is that Gypsy Swaps are a means to evade the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and violate Section 5 of the Securities Act. The SEC has established specific rules in the Securities Act under Section 5 that require any new stock transaction must be listed with the SEC. The SEC has said unequivocally that Gypsy Swaps are infractions of Section 5 of the Securities Act of 1933, exposing all participants to monetary and other civil penalties, including disgorgement. It's important for issuers and investors to remember that a Gypsy Swap is only one way to avoid the registration requirements of Section 5 of the Securities Act. Any transaction in which t...

Shell Risk Designation

  The OTC Market launches this new Promotion Risk flag that should assist investors in recognizing stocks that are now part of a stock promotion strategy.   OTC Markets with their team keeps a close eye on a number of sources to assess whether a stock is being pushed, so their main assignment is to gather information from a massive number of market players and analyze all collected data before putting the Promotion Risk flag on their website.  A “Shell Risk” flag has been added to these new designations, signifying that a corporation exhibits features related to shell corporations, based on a review of the firm’s major yearly financial data, which are connected to limited activities. Shell corporations have few or no assets and operations. All that OTC Markets try to do with all these activities is to demonstrate their dedication to a market compliance monitoring system that promotes more transparency, prompt info, and at last greater security of investors so to be a...

The reasons why you should hold Penny Stocks

There are many prejudices about Penny Stocks and why should anyone have them in their portfolio. As defined by the U.S. Securities and Exchange Commission, penny stock is any publicly traded firm’s share that trades below $5 per share.   These types of stocks are inexpensive, allowing you to invest without committing large sums of money, which is advantageous for those on a limited budget.   That also implies if the business in that you have just invested fails, you won't suffer a significant loss per share.  Finally, all this indicates that the very same amount of money can purchase more penny stock shares than it can purchase more expensive securities shares. Tremendous gains can be made with a tiny initial investment. As a result, they have the potential to become extremely successful.  Despite their significant volatility, penny stocks provide excellent returns. These stocks have the ability to provide explosive growth of 100% or over in a single day, a...

Reverse Takeover (RTO)

A reverse takeover (RTO), sometimes known as a reverse IPO, is the process by which a small private business acquires a bigger, existing publicly listed firm in order to go public. Because the smaller firm is taking over the larger company, the merger is going place in "reverse" order, which is unusual. Benefits of a Reverse Takeover 1. No need for registration Because the private business will acquire the publicly traded firm through the mass purchase of shares in shell companies, unlike an IPO, the company will not require registration. 2. Less expensive A tiny private company's decision to go public through an Initial Public Offering (IPO) is not simple. It has the potential to be extremely costly. The cost of a reverse takeover is often a fraction of the cost of an IPO. 3. RTO saves time The registration and listing procedure for an initial public offering (IPO) can take months or even years. A reverse takeover shortens the time it takes to go public from many months ...

What Is Cryptocurrency's Purpose?

Many elements of our lives have altered as a result of the digital era, including how we access information and communication throughout the world. With the introduction of cryptocurrencies, this pervasive digitization has left its stamp on money as well. But, you could wonder, what is the purpose of cryptocurrencies. In many respects, the emergence of cryptocurrencies typifies the digital era: after all, money is an abstraction of value exchange between individuals, and cryptocurrencies have the ability to measure, record, and transmit value transactions on a wider scale than ever before. These coins are run on decentralized communal networks and are available 24 hours a day, 7 days a week, from anywhere. In other words, cryptocurrencies are digital assets that are widely accessible and suitable for use in a digital environment. The Rise of Cryptocurrencies  Look no farther than the evolution of Bitcoin, the world's first cryptocurrency, to understand why cryptocurrency markets ar...