| |
| |
|
Small Business Information |
|
|
|
Market Makers Play a Significant Role in Reverse Mergers
One overlooked individual in the process of taking a company public through reverse merger is the market maker. The market marker is critical especially if the company is going to be listed on OTC Bulletin Board or the NQB. Pink sheets. Once the private company has decided to go public and has engage a consultant to advise management on the best way to proceed. And a determination has been made to do a reverse merger. The first step is to identify an available corporate shell to purchase and perform the due diligence on the shell. The company decides to purchase the shell and proceeds with the reverse merger. The required Securities and Exchange Commission filing must be done. The Securities and Exchange Commission upon reviewing the document and finding the document to be in order will approve the company's filing. Now the consultant will recommend a market maker to sponsor the company with NASDAQ's Small Cap Market, OTC Bulletin Board or NQB Pink sheets. This is accomplished by filing form 15c211. The broker dealer may not publish a quotation for any securities unless certain information concerning the issuer is available and the broker or dealer has a reasonable basis for believing that the information is accurate. Some of those of those Securities and Exchange commission requirement are satisfied if: (1) Securities Act registration statement (F-6, F-1) has been filed within 90 days. (2) The issuer is complying with the filing requirements and the broker dealer has in its records the issuer's most recent annual report. (3) The issuer is complying with rule 12g3-2(b) (4) The broker dealer has on record information relating to the issuer, its securities, its business, products and facilities, management and financial statements and certain other require information. The broker dealer is not compensated by company for this service causing the broker to absorb the cost involved in time spent and the regular monthly charges by the OTC. Bulletin Board for being a market maker in the company's stock. The broker must stay on top of the filing and answer all questions pertinent to filing as requested by the OTC Bulletin Board. After approval the market maker must again file a request to publish a price for the securities of the issuer. For a short period of time the broker dealer will be the sole market maker, being willing to buy and sell the stock for his own inventory, and assuming all the risk by himself but he also will be involved all the transactions that take place and stands to make all the profits as well. After a period of time (usually 30 days) other market makers will be able to piggy back on the broker dealer who did the original filing and be able to publish a quotation. This provide more liquidity since a single market maker will not be responsible for all transactions. Market Makers in Bulletin Board stocks must honor their bid and ask (bid the price they are willing to pay for stock, ask the price they are willing to sell stock) price. Below is a limited chart of the price and size mandated by the OTC.bb. Price Minimum quote size 0-.50 5,000 0.51-1.00 2,500 1.01-10.00 500 10.01-100.00 200 The market maker role in assisting companies to go public is significant, he is the one who will be taking the risk and will reap the rewards depending on how well the securities trade. Please visit our website for additional information in going public. www.genesiscorporateadvisors.com Joseph D. Quinones, President of Genesis Corporate Advisors has spent over 25 years in the securities industry. In 1992 he founded JDQ Financial Group, Inc. and proceeded to build it up from a one man operation to the point where it employed many traders, advised numerous client and generate millions in revenues.
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
Community Relations Strategy for Small Business Does your company have a community relation strategy? Have you even considered it? It is essential to have policies in place. Having run a small business for years which eventually turned into a multi-state franchise system, I realized early on that a business who is part of the community it serves can survive the ups and downs of the business cycles, making it somewhat recession proof. Consistency with Janitorial and Cleaning Businesses Consistency is a huge word when operating your business. I believe it is one of the key ingredients to success. Does Your Small Business Marketing Suffer From The Bulldog Effect? If you're an entrepreneur responsible for your own small business marketing, there's a marketing method you should avoid at all costs, which I've coined the bulldog effect for reasons you will understand shortly. Keep reading to find out if you're guilty of using this technique in your own marketing and learn how to fix it. Small Business Pricing Strategies TACTIC #1 -- Never simply slash your prices, unless you're trying to empty obsolete inventory. Instead, try repackaging your prices so they're more affordable in the short-run so more prospects can afford them. Reaping the Rewards of Cost Cutting In these days of insecurity and uncertain futures, the tendency is to manage for survival but the smart business leaders are actively hunting for profits.And they are doing this without launching costly new initiatives or major capital investments. Who Makes the BEST Business Partner How do you find the best business partners?Finding a good business partner (outside partner, such as an alliance) requires an amount of due diligence. This simply means you will need to look at all aspects of the other person's business and sometimes a bit of their personal life. Small Businesses with BIG NAMES: Protect Your Trademarks and Reap the Rewards You're a small business owner with a hot new product or service and you're deciding what to name it. Perhaps you've even hired a graphic designer to create a flashy logo to go with it. Grab Your Consumers Attention in a Cluttered World of Marketing Communications A cluttered world of marketing communications diminishes the ordinary. The consumer can no longer be bother with the dull, trite and a boring hodgepodge of marketing communications that are pandered in front of them every day. Is Your Business Profitable? What's your job profitability? Do you know?Many business owners are unsure of their profitability at a company or job level. They "think" they are making money because they have a few dollars in their checking account. Secrets to Washing Fleets of Trucks from a Nationwide Fleet Washing Service Washing the exterior of a truck. Sounds easy right? Well, it's not really. Top 10 Record Keeping Mistakes Business Owners Make (and How To Avoid Them) If you interviewed business owners of failed businesses, a majority will tell you that they didn't understand or feel comfortable dealing with the "book work". Your ability to understand and perform day to day accounting tasks in your small business is a critical success factor. A Great Logo Is A Marketing Must-Have. But Is It Affordable For Small Business Owners? And is having a logo really that important?My answer to both of these questions is an emphatic YES!A logo is a graphic or visual representation of your brand. Your brand is your business, product or service and what it stands for. Looking for a Business to Run in the New Revitalized Downtown Area? Looking for a place to add a Quick Lube away from your Super Wal-Mart Competitor? Down Town Revitalization, Why You Should Be Part of Such a Committee.A study showed that within the next five years 20% of LOF- Lube, Oil and Filter Independent Owners said they had plans on adding one or more facilities. Buy a Flower Shop: Serious Considerations You've always liked flowers and you think the idea of turning emotions into floral expressions sounds like tremendous fun. You are between careers and have been investigating business opportunities in your community. Collection Agency Selection Frankly, given the legal and regulatory requirements involved in attempting to collect a debt, it makes as much sense to do it yourself as it does to try to remove your own appendix. A collection agency is, on the whole, much cheaper than a doctors - and lawyers. The Care and Feeding of Your Small Business While I was hard at work last week, an everyday drama was playing out in a hospital room in the next town. My niece was working on presenting me with a new great nephew. Expanding your business. Are you a small business owner who wants to expand your business? Do you need to add another professional location to your company to test and explore a new market? Does a prospect of spending thousands of dollars to find a right location, sign a new long term office lease, purchase or lease office equipment and hire new employees holding you back?Virtual office center may be the answer for you! The concept of virtual office is not new but with advancements in latest internet/communication technologies, the idea of virtual office has become far more appealing for a wide range of businesses. The reason for that is a marriage between computers, internet and telephone systems. When to Say NO! When is it a good thing to say no to a request?Balance in one's life is perhaps the most important goal for busy people. They can take on many more projects that most others. Do You Microbifer in Your Cleaning Business? Microfiber cleaning towels have been around for about ten years now. When I first heard about them they were being sold through distributors in an MLM business. Encouraging Your Customers to Pay On Time Nothing can drive a business down faster than customers who don't pay their bills as agreed. When you sell to customers on credit you are making an agreement with them.
|
|
|
|
|
