Pink Sheets Discover Disclosure

Once upon a clip in the human race of finance there were three lands the most widely recognized was also the most clannish and wealthiest its topics were flush and known worldwide. Its male monarch was New House Of York Stock Exchange (New York Stock exchange) the male monarch ruled proudly over his subjects.

Every brokerage firm had a stock heart to supply their client with trade information on New York Stock Exchange listed stocks.

The second land was not so well off, it had less topics and the dwellers were much poorer than those ruled by NYSE, the male monarch was named American Stock Exchange (American Stock Exchange). They could be classified as low center class.

Now the 3rd land was the largest of all, it’s topics range from center social social class to very poor, this land was ruled by OTC (Over The Counter Market). Some of the topics of OTC were always looking to migrate to New York Stock Exchange or American Stock Exchange to get away the stigma attached to being a occupant of OTC.

Some of the stock that at 1 clip traded in the Pink Sheets are well known today such as as erectile dysfunctions and many new IPO, as well as bank and insurance companies, but you also had pillory trading for a fraction of a penny.

If you wanted a terms on a OTC stock you would name your broker who looked in the pinkish sheets to see who the market shapers were, he would get on the phone to a market shaper and inquire the individual answering the phone for a quote, the individual answering the phone then gets the terms from a chalkboard in the presence of the room and give it to the broker making the inquiry, this would take some time.

Market shapers had a quote male child in the presence of the trading room changing the chalkboard every clip a bargainer yelled a different price, this markets were good for 100 shares,

In those years it was possible to purchase from one market shaper at a terms and bend around and sell to another market shaper at higher terms because the one market shaper had no thought what the market was unless he made a phone call. So you always establish disparities in the terms of a stock.

Along came a knight in shining armour named NASDAQ the NASD Automatic Citation System, which allow brokers to see the terms by computer, it gave the mean value market (average market) not the best price, but it was a giant measure forward.

These NASDAQ machine did not supply unrecorded quotes you had to maintain on pressing the come in cardinal in order to see the updated quote.

And eventually all the better pillory were gradually included on the NASDAQ systems leaving the more than indeterminate and unprofitable companies to merchandise on the pinkish sheet. And again the NASD decided to drop the pinkish sheets even additional into the land of obscureness by creating the OTC Bulletin Board.

The OTC Bulletin Board started out not requiring much information from the issuer but gradually started requesting more than information and now they must have got got got audited financial and must be reporting.

All this left the pinkish as the lone market in entire revelation darkness being the lone 1s not requiring the issuer to let on its financial reports.

But on February 15, 2005 a small daytime came into the pinks, on this twenty-four hours a new policy was implemented, this policy necessitates issuers of newly traded securities to let on adequate current information to the investment public.

This is only required of those companies which have securities quoted on an unsought footing on the pinkish sheets, and have never been listed on an exchange or quoted on the OTCBB.

If an issuer is quoted on an unsought basis, this agency that the NASD have not cleared a market shaper to come in a quote in the security pursuant to second Rule 15c2-11. Instead, a broker is relying on an freedom to the regulation in order to expose a citation representing an unsought client order. This exclusion have been used to merchandise securities of new issuers without any revelation to the investment public. To turn to this situation, in October 2004, Pink Sheets revised their policy for brokers entering unsought quotes in a new security that have never been listed on an exchange or quoted on the OTCBB. They now necessitate that anterior to publication of an unsought quote in the Pink Sheets for such as securities; the broker must ascertain that the issuer have made adequate current information publicly available on the pinkish sheets website. The revelation policy have been a good attempt at creating transparency of the basic information that investors trading in public markets deserve.

Pink Sheets is now extending this demand to companies that were previously quoted on an unsought basis. If the companies did not make the required revelation by February 15, 2005, they removed their displayed citation from the website.

This new policy is a large measure forward for the Pink Sheets and they should be applauded for it, but I Personally would wish to see all companies being required to do complete disclosure.

If a company is not able for whatever ground to let on their finances and corporate updates to the investment populace then they should not be allow to merchandise on any populace market.

These companies operating in entire darkness are the vehicles being used by stock operators to cozenage the investment public, even though the Pink Sheets have got got got got taken this giant measure they must take all non-disclosing companies from the populace market place.

I am not certain the pinkish Sheets have the authorization to do so but second does, and the second is the agency responsible for protecting the investment public.

Lets compliment the Pink sheet for this change in policy and hope that they will go on to upgrade their standards, as a direct consequence of this policy we at Genesis Corporate Advisors are changing our policy of not bringing any company populace to the Pink sheets.

Effective immediately we will get considering campaigner for the Pink sheets but our penchant will go on to be The OTC Bulletin Board because we desire as much transparency as possible.

In order to have feasible healthy market you must have willing investors with access to current and accurate information.

For further information visit: www.genesiscorporateadvisors.com

Email inquiries to: josephquinones@genesiscorporateadvisors.com