The over-the-counter market is what the industry calls the OTC market, also known as the over-the-counter market or over-the-counter market. It refers to the market where securities are bought and sold outside the securities trading venue. It mainly consists of the over-the-counter market, the third market, and the fourth market.

From the perspective of transaction organizational form, the capital market can be divided into exchange market and over-the-counter market. The over-the-counter market is relative to the exchange market and is conducted outside the stock exchange. A market for buying and selling securities.

The physical concepts of the traditional on-exchange market and the over-the-counter market are distinguished as follows: transactions in the exchange market are concentrated in the trading floor; the over-the-counter market is also called the "over-the-counter market" Or "over-the-counter market", it is a market scattered across the counters of various securities firms, without centralized trading venues and unified trading systems. However, with the development of information technology, the way of securities trading gradually evolved to collect orders through network systems, and then processed by electronic trading systems, and the physical boundaries between the on-site market and the over-the-counter market gradually blurred.

At present, the concepts of on-site market and over-the-counter market have evolved into the concept of risk stratification management, that is, different levels of market are based on the risk of listed products, through listing or listing conditions, information disclosure system, transaction Differentiated arrangements have been made for the settlement system, securities product design, and investor constraints to achieve vertical risk stratification of capital market trading products. U.S. OTC market

The traditional OTC market in the United States includes OTC (Over the Counter Bulletin Board, the U.S. over-the-counter trading system) and the traditional Pink Sheet market. In recent years, it has gradually developed and unified into the OTC Markets (OTCMarkets), which consists of OTCQX, OTCQB and OTCPink.

The OTC market is a quotation system established by the National Association of Securities Dealers (NASD) for small companies that cannot meet the listing requirements of the three major U.S. securities trading markets. It is directly supervised by Nasdaq and provides Electronic trading system for OTC real-time quotes, latest transaction prices and transaction volume information. By providing public information, it enables these securities to be traded in a legal and good secondary circulation market, and can effectively increase the liquidity and visibility of securities. Overview of OTC market listing: OTC market listing standards

OTC has no fixed listing standards, and the stocks of any joint-stock company can be quoted here. However, stock issuers are required to submit required information disclosure documents to the SEC or the corresponding regulatory authorities, and undertake information disclosure obligations such as quarterly financial reports and annual reports. Financial statements and declaration documents must be verified and signed by accountants and lawyers. All companies quoted in OTC must be sponsored by at least one market maker. If no market maker quotes for the company, the company will be delisted from OTC. Upgraded to the Nasdaq market through the OTC market

As long as the net assets of a company listed on the OTC reach US$4 million, the annual after-tax profit exceeds US$750,000 or the market value reaches US$50 million, shareholders If there are more than 300 people and the stock price reaches US$4 per share; or if it meets other criteria, it can be promoted to the Nasdaq Capital Market. Therefore, OTC is also known as "Nasdaq's preparatory market." For example, world-famous companies such as Microsoft and Cisco were initially listed on OTC and thus developed and grew.

The company is listed on OTC. If it wants to apply for listing on Nasdaq, it only needs to go through the listing process for 6-8 weeks, and does not need to go through the U.S. Securities and Exchange Commission (SEC) registration process and public offering. The procedure is very convenient compared to conventional methods such as IPO. Because the company listed on OTC is already a public company in the United States and meets all the requirements of the SEC for public companies, there is no separate SEC approval process. At the same time, listing is not a fund-raising process. The process of listing on OTC and achieving listing on Nasdaq in the United States

1) Hire a listing consultant and sign relevant agreements;

2) Sign an agreement to purchase a shell company, or register Overseas companies;

3) Apply for foreign exchange registration with the domestic foreign exchange management department (if applicable);

4) Change the list of shareholders and directors of the shell company;

5) Shell companies or newly established overseas companies return to merge and acquire domestic companies to be listed (if applicable);

6) Apply to the foreign exchange management department to change the foreign exchange registration certificate or foreign exchange registration form (if applicable);

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7) Hire an independent auditor to audit domestic companies;

8) Hire a lawyer recognized by the U.S. Securities and Exchange Commission (SEC) to issue a lawyer’s letter;

9 ) Submit applications to the SEC item by item;

10) Accept various inquiries from the SEC and respond;

11) Obtain approval from the SEC;

12 ) Confirm or change the market maker (at least one market maker in the OTC stage);

13) Issuance of additional stocks;

14) The operation of the secondary market of stocks, so that the market value of the stock or The market price of the stock meets the Nasdaq listing requirements;

15) After meeting the Nasdaq listing requirements, apply to Nasdaq for stock listing and trading.

Listing fees on the U.S. OTC market

The vast majority of mainland Chinese companies listed on OTC adopt the method of shell listing. Shell listing is popular among mainland small and medium-sized enterprises because of its short time and high success rate. favor. However, if you are not in a hurry to list on OTC, you can save a lot of money by listing through shell construction, but some uncertainties may increase accordingly. OTC Information Disclosure Requirements

Issuers are not required to report or fulfill disclosure obligations to NASDAQ Market Companies or NASD. However, all issuers of stocks quoted on OTC should regularly perform disclosure obligations to the US SEC or other regulatory agencies. Issuers should report major corporate events before the effective date, including mergers, acquisitions, name changes, and details and related documents of all major events. The issuer must report to the OTC coordinator 10 days in advance information on stock splits, mergers, dividends, or other distribution information. Late filing may result in delisting.