Syndicate
From OTCBB to the AMEX
You probably ask, why the AMEX? To see where a stock is likely to end up if it graduates from the OTCBB, we will examine the listing requirements and fees for the many US securities exchanges. We will begin with the AMEX. The AMEX has four different standards for the listing of domestic securities. For briefness, we will limit our discussion to the standard listing requirement. First off, in order to list on the AMEX, shareholders' equity in the applying company must be $4 million. Pre-tax income must be at least $750 thousand in the last fiscal year or in two of the last three fiscal years. There must be anywhere from four to eight hundred public shareholders and five hundred thousand to one million shares publicly held. The smallest amount price of the stock must be $3 and the market cap must be $3 million. The listing fees for the AMEX range from $35 thousand to $65 thousand depending on the total number of shares to be listed by the corporation.
The NASDAQ, like the AMEX, has abundant listing standards, but we will focus on requirements for listing on the NASDAQ Small Cap Market as this is the probable place for an OTCBB stock to end up if goes to the NASDAQ. For a primary listing on the NASDAQ Small Cap Market, a corporation must have stock holder equity of $5 million, a market value of $50 million, or net income of at least $750 thousand in two of the three previous fiscal years. There must be at least three hundred round lot shareholders with one million publicly held shares and a market valuation of at least $5 million for these shares. The corporation ought to also have three market makers and a history of operation of at least one year. The charges for listing on the NASDAQ Small Cap Market range from $2 thousand to $50 thousand depending on the total number of shares to be listed by the company.