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By Staff Reporters
The OTCQB, also called “The Venture Market,” is the middle tier of the over-the-counter (OTC) market for U.S. stocks. It was created in 2010 and consists mainly of early-stage and developing U.S. and international companies that are not yet able to qualify for the OTCQX but are not as speculative as the lowest-tier Pink Sheets.
The OTCQB replaced the Financial Industry Regulatory Authority (FINRA)-operated OTC Bulletin Board (OTCBB) as the main market for trading OTC securities that report to a U.S. regulator. As it has no minimum financial standards, the OTCQB often includes shell companies, penny stocks, and small foreign issuers.
LINK: https://www.otcmarkets.com/files/OTCQB%20Fact%20Sheet%20for%20U.S.%20Companies.pdf
Key Takeaways
- The OTCQB is the mid-tier OTC equity market, which lists primarily early-stage and developing companies in the U.S. and international markets.
- OTCQB companies must meet certain minimum reporting standards, pass a bid test, and undergo annual verification.
- The other OTC tiers are the highest quality OTCQX, and the most speculative Pink Sheets.
CITE: https://www.r2library.com/Resource/Title/082610254
READ MORE: https://www.investopedia.com/terms/o/otcqb.asp
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Filed under: Glossary Terms, Investing | Tagged: OTC-QB Venture Market, OTCQB, venture market, What Is the OTC-QB Venture Market? |
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