Stock Exchange Listings: FSE Listings versus OTC Listings
Going public on a stock exchange is a rather simple task, it is a matter of making your shares available electronically to individual investors and the public through a series and combination of transfer agents, clearing systems, and brokerage firms, all of which lead back to the stock exchange.
Let’s take as an example a listing on the Frankfurt Stock Exchange.
- Incorporate your company and register an ISIN number
- Register Your Shares with a transfer agent who can register your shares electronically
- Electronically register the shares with the Clearstream trading system
- Apply with the issuer data form for listing on the Frankfurt Stock Exchange
- Deposit shares of your investors or shareholders into Brokerage Accounts
- Trade the shares as a public company
On the Frankfurt Stock Exchange, this takes an average of 3-6 weeks with FSE Listings Inc.
This is the simple how to go public process on the Frankfurt Stock Exchange, but you will need to have a website, a business, and meet the requirements of listing. Marketing your firm is the post listing activities that need to be discussed as well. It is part of the going public process because listing on the Frankfurt Stock Exchange is the key to getting to the investors, marketing attracts them to your firm.
How do you go public on the US OTC Markets?
- File an S1
- Register with a transfer agent
- Offer shares and register with a Market Maker
- Fill in form 15c 211 and file it with the Market Maker
- File with FINRA and obtain a symbol
- Clear through DTC for trading
- Deposit investor shares for trading (Legal Opinions may be required)
OTC Listings take 6-12 months, sometimes much longer due to the US definitions of shell company status.
The Advantage of an FSE Listing over the OTC Listing is that Germany doesn’t have a Shell company definition like the US that prohibits trading and clearing of shares, it doesn’t have the expensive reporting requirements, it doesn’t have the same high maintenance costs and or Sarbanes Oxley requirements. In general, a Frankfurt Listing has access to one of the world’s largest retail investor markets and new companies can successfully list and trade in 3-6 weeks! US listings take months and there is no guarantee of listing due to shell status definitions.
Our firm, FSE Listings Inc (www.fselistings.com) and OTC Listings (www.otclistings.com) have been listing companies on both exchanges for over a decade.
We can help you list on any exchange in the world, however, the best listing in the world in our opinion is the Frankfurt Listings. Contact us to discuss why! info@fselistings.com