In a previous blog post, I talked about some of the “pains” associated with a being an exchange-listed company today. Not only does it cost $2.5 million to do an IPO onto a U.S. exchange, it costs on average $1.5 million per year in legal, accounting, advisory and compliance costs to maintain an exchange listing, according to a 2011 study by the IPO Task Force. And that doesn’t include the value of management’s time and internal resources that are diverted to meet increasingly complex exchange rules and processes – and away from growing the business.
At OTC Markets Group, our goal is to remove the obstacles associated with being a publicly-traded company by reducing costs and complexities for business and investors. In this post, I outline the three ways we’re helping to take the pain out of being public:
- our data-driven market standards
- technology-driven information distribution
- broker-dealer-based trading model