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OTC Markets Blog

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Cromwell Coulson

President & CEO

How Can We Take the Pain Out of Being Public? Part II

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:

  1. our data-driven market standards
  2. technology-driven information distribution
  3. broker-dealer-based trading model

Continue reading “How Can We Take the Pain Out of Being Public? Part II”

Let Public Companies Sell Shares in the Public Markets

If we want growing companies to go public, we need our public markets to be a competitive source of growth capital. One easy solution is to let public companies sell their shares in the same way they can now buy them back: through brokers directly into their established public markets. Removing the outdated restrictions on selling shares publicly will lower the cost of capital and attract more growth companies to our markets.

Continue reading “Let Public Companies Sell Shares in the Public Markets”

How Can We Take the Pain Out of Being Public?

A key driver of the American economy is the capital formation process that fosters innovation and new enterprises.   Entrepreneurs raise capital to grow their business, innovate and create jobs.  For many smaller companies, the expectation is to conduct an Initial Public Offering (IPO) and list on a stock exchange – hoping to build liquidity and visibility, and ultimately, long term shareholder value.  While these efforts are well-intention-ed, many companies today find themselves putting off the IPO because they do not want to be overwhelmed by the increasing management time commitment, red tape and costs associated with being a public company.

Continue reading “How Can We Take the Pain Out of Being Public?”

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