Thursday, January 25, 2007
Compliance services are provided by companies like Blue Sky Data Corp who are experts in state compliance rules:
Pink Sheets LLC today announced that it has retained Blue Sky Data Corp to provide analysis, review, and guidance for all OTCQX listed companies and their counsels on state securities requirements pertaining to secondary trading. For each company that lists on OTCQX, Blue Sky Data will analyze and review its blue sky status and/or available exemptions in every state and U.S. possession. Blue Sky Data is a recognized leader in maintaining a database on every domestic and foreign security traded in the U.S. Every day brokerage houses and clearing firms around the country use Blue Sky's database to keep the securities industry in compliance with state rules and regulations.The Bank of New York is an ADR Principal American Liaison, whose acronym is PAL. They currently have 64% market share in ADR depository services.
There are different types of OTCQX companies. The Premier level for companies that are pretty much qualified for a national stock exchange, with or without SEC registration. The Prime level for companies with GAAP audits and specific other disclosure, with or without SEC registration. There are also international versions of Premier and Prime levels for companies listed on qualified international stock exchanges.
The OTCQX "DAD"s can custom tailor a company's disclosure based on the business needs. The purpose of the DAD is to keep out companies without sufficient or questionable disclosure. The PAL does the same thing for international companies and helps avoid duplicating effort that they've already done in their home country exchange.
In other news, I've been bogged down in a potential new investment. It's going slow. I've started buying a small number of shares. Plus I'm getting dragged into... I mean looking into a private local investment activity, mostly just to bounce ideas around.