Market Makers Play a Significant Role in Reverse Mergers....
Below is a MRR and PLR article in category Business -> subcategory Other.
The Critical Role of Market Makers in Reverse Mergers
In the process of taking a company public through a reverse merger, the market maker plays a pivotal role, especially for companies aiming to be listed on the OTC Bulletin Board or the NQB Pink Sheets.
Overview
Once a private company decides to go public and seeks consultation for the best strategy, a reverse merger may be deemed the optimal approach. This involves identifying and purchasing a corporate shell, conducting due diligence, and proceeding with the merger. Essential Securities and Exchange Commission (SEC) filings must be completed and approved.
Role of the Market Maker
After these initial steps, the consultant recommends a market maker to sponsor the company on NASDAQ's Small Cap Market, the OTC Bulletin Board, or NQB Pink Sheets by filing form 15c211. A broker-dealer can only publish a quotation for securities if accurate information about the issuer is available, with specific SEC conditions met:
1. A Securities Act registration statement (F-6, F-1) filed within 90 days.
2. Compliance with filing requirements, including the issuer's most recent annual report.
3. Adherence to rule 12g3-2(b).
4. Availability of detailed records about the issuer, including financial statements and management information.
Responsibilities and Processes
The broker dealer, who is not compensated by the company, bears the cost of fulfilling these requirements, including monthly charges by the OTC Bulletin Board. They must manage filings and respond to inquiries. After approval, market makers file requests to publish security prices.
Initially, the broker dealer acts as the sole market maker, handling all transactions and risks. After approximately 30 days, other market makers can join, increasing liquidity and reducing sole responsibility.
Quotation Requirements
Market makers in Bulletin Board stocks must honor their bid (buy price) and ask (sell price) quotations. Below is a summary of mandated prices and minimum quote sizes:
| Price Range | Minimum Quote Size |
|-------------------|--------------------|
| $0 - $0.50 | 5,000 |
| $0.51 - $1.00 | 2,500 |
| $1.01 - $10.00 | 500 |
| $10.01 - $100.00 | 200 |
Conclusion
The market maker's role in assisting companies to go public is crucial, involving risk and potential rewards. For more information on going public, visit [Genesis Corporate Advisors](http://www.genesiscorporateadvisors.com).
You can find the original non-AI version of this article here: Market Makers Play a Significant Role in Reverse Mergers.....
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.