The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
federal Reserve b a n k o f Dallas DALLAS, TEXAS 75222 C irc u la r No. 76-41 March 23, 1976 American Revolution Bicentennial PROPOSED CHANCES TO THE LIST OF P T C MARGIN STOCKS FOR IN IT IA L AND CONTINUED LISTING REQUIREMENTS Supplement to List of P T C M argin Stocks TO A LL BANKS, BRPKERS/DEALERS, REGULATIGN G REGISTRANTS, AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE D ISTR IC T: T h e Board of Governors of the Federal Reserve System has announced several changes, effective March 15, 1976, in its "List of OTC M argin Stocks" that was issued in revised form on September 29, 1975. In another m atter, the Board has proposed to amend some of the c rite ria that o v e r-th e counter (OTC) stocks must meet and continue to meet to be included on its List of O TC M argin Stocks. More than 800 stocks a re now on the list and subject to the Board's m argin regulations. T he proposal reflects changes that have occurred in the OTC m arket in recent y e a rs , p a rtic u la rly the increased competition among the securities m arkets and the impact of the National Association of Securities Dealers Automated Quotation System (NASDAQ) . The changes in initial listing requirem ents that would be made by the proposed amendments are as follows: (1) the num ber of req u ired m arket-m akers would be reduced from 5 to 4; (2) the requirem ent for 1,200 or more holders of record need not be met for stocks w ith an average d a ily tradin g volume of at least 500 shares; and (3) the req u ired average stock p rice would be reduced from $10 a share to $5 a share. T h e c rite ria for continued listing would be changed as follows: (1) an a lte rn a tiv e to the requirem ent for 800 or more holders of record would be an average d a ily volum e of 300 shares; and (2) the re q u ire d average stock p ric e of $5 a share would be reduced to $3 a share. Interested persons a re invited to submit relevan t data, v ie w s , or argum ents concern ing this proposal in w ritin g to the S e creta ry , Board of G overnors of the Federal Reserve Sys tem, Washington D .C . 20551, to be received no later than A p ril 23, 1976. A ll m aterials submitted should include the docket num ber R -0025. A n extract from the FEDERAL REGISTER follow s, along w ith a summary of the initial and continued listing requirem ents and a Supplement to the List of OTC M argin Stocks. A d d i tional copies w ill be furnished upon request to the S e c reta ry 's Office of this B ank. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2 - A ny in q u iries should be d irected to our Regulations Department at (214) 651-6319 or 651-6325. S in ce re ly y o u rs , T . W. Plant F irs t Vice President Enclosures Extract From FEDERAL REGISTER, VO L. 41, NO. 54, T h u rs d a y , M arch 18, 1976, p p . 11324 - 11326 FEDERAL RESERVE SYSTEM [ 12 CFR Parts 207, 220, and 221 ] [Begs. O, T, a n d IT, D ocket No. R-0025] SECURITIES CREDIT TRANSACTIONS Requirements for Inclusion and Continued Inclusion on the List of OTC Margin Stocks P ursuant to th e au th ority o f section s 7 and 23 of th e S ecu rities E xch an ge Act o f 1934 (15 U.S.C. 78g an d w ), n otice is hereb y given th a t th e B oard o f G over nors proposes to am end th e section s of P arts 207, 220, and 221 w hich contain th e requirem ents for a stock ’s inclusion and continued in clu sion on th e L ist of OTC M argin Stocks. T he purpose of th e proposed am en d m en ts is to revise th e criteria for in clu sion and con tin u ed in clusion on th e L ist o f OTC M argin Stocks in view o f sign ifica n t ch an ges w hich have occurred in th e over-th e-cou n ter (OTC) m arket, particularly th e increased com p etition am ong th e secu rities m arkets and th e im p act o f th e N ation al A ssocia tio n o f S ecu rities D ealers A utom ated Q uotation S ystem (N A SD A Q ). T h e ch an ges in in itia l listin g require m en ts th a t w ould b e m ade by th e pro posed am en d m en ts are a s follow s: (1) T h e num ber o f required m arket-m akers w ould be reduced from 5 to 4; (2) th e requirem ent for 1200 or m ore holders o f record n eed n o t be m et for stock s w ith an average d ally trad in g volum e o f a t le a st 500 shares; and (3) th e required average stock price w ould be reduced fro m $10.00 per sh are to $5.00 per share. T h e criteria fo r con tin u ed listin g w ould be chan ged a s follow s: (1) An a ltern ative to th e requirem ent fo r 800 or m ore holders o f record w ould be an average daily volum e of 300 sh ares; and (2) th e required average stock price of $5.00 p er share would be reduced to $3.00 per share. T he am ended section s o f R egulations G, T, an d U (12 C.F.R. P arts 207, 220 a n d 221) w ould read as follow s: PART 207— SECURITIES CREDIT BY PER SONS OTHER THAN BANKS, BROKERS, OR DEALERS 1. Paragraphs (d) an d (e) o f S 207.5 (th e S upplem ent to R egu lation G ) would b e am ended as s e t fo rth below : g 207.5 • Supplem ent. • • » » (d) R eq u irem en ts fo r in clu sion on L ist of O T C M argin S tocks. E xcep t as provided in subparagraph (4) o f S 207.2 ( f ) , su ch stock sh a ll m eet th e require C om pany A ct o f 1940 (15 U .S.C . 8 0 a -8 ), ch an ge pursuant to sectio n 5 o f t h e (2) T h ree or m ore d ealers sta n d w ill S ecu rities E xch an ge A ct o f 1934 <15 m en ts th a t: (1) T he stock is su b ject to registration in g to, an d do in fa ct, m ake a m ark et In U .S.C . 7 8 e ), (3) T h ere are 1,200 or m ore holders of under sectio n 12(g) (1) o f th e S ecu rities su ch stock in clu d in g m aking regularly E xch an ge A ct o f 1934 (15 U.S.C. 781(g) p ublished b on a fide bids and offers fo r record as defined in SEC R ule 1 2 g 5-l ( 1 ) ) , is issued by an insu ran ce com pany su ch sto ck for th eir ow n accounts, or th e (17 C.F.R. 2 4 0 .1 2 g 5 -l), o f th e stock w ho su b ject to sectio n 12(g) (2) (G ) (15 U.S.C. stock is registered on a secu rities e x are n o t officers, directors, or beneficial 781(g) (2) (G )) th a t h as a t le a st $1 m il ch an ge th a t is exem pted by th e S ecu ow ners o f 10 percent or m ore o f th e lio n o f ca p ital and surplus, or is issued rities an d E xch an ge C om m ission from stock, or th e average d aily trad in g vol by a closed -en d in vestm en t m anagem ent registration as a n a tio n a l secu rities e x um e o f su ch stock, as determ ined by th e com pany su b ject to registration pursu ch an g e p ursuant to section 5 o f th e S e Board, is a t le a st 500 shares, (4) T h e issuer is organized under th e a n t to section 8 o f th e In vestm en t Com cu rities E xch an ge A ct Of 1934 (15 U.S.C. law s o f th e U n ited S ta tes or a State" 7 8 e), p a n y A ct o f 1940 (15 U.S.C. 80ar-8), (3) T here con tin u e to be 800 or m ore an d it, or a predecessor in in terest, h as (2) F our or m ore d ealers sta n d w illin g to, an d do in fa ct, m ake a m arket In such h old ers o f record, as defined in SEC R ule been in ex isten ce for a t le a st 3 years, (5) T he stock h a s been publicly traded stock Including m aking regu larly pub 1 2 g 5 -l (17 CFR 2 4 0 .1 2 g 5 -l), o f th e lish ed bona fid e bid s an d offers fo r such stock w ho are n o t officers, directors, or fo r a t le a st 6 m onths, (6) D aily quotations for b oth bid and sto ck for th eir ow n accounts, o r th e stock ben eficial ow ners o f 10 per c e n t or m ore is registered o n a secu rities exch an ge o f th e stock, or th e average d aily trad in g asked prices fo r th e stock a re co n tin th a t is exem pted by th e S ecu rities and volum e o f su ch stock, as determ ined by u ou sly availab le to th e gen eral public, an d E xch an ge C om m ission from registration th e Board, is a t le a st 300 shares, (7) T here are 500,000 or m ore shares (4) T h e issu er con tin u es to be a U .S. a s a n a tio n a l secu rities exch an ge pur o f su ch stock ou tstan d in g in addition to corporation, su a n t to section 5 o f th e S ecu rities E x (5) D aily quotation s fo r b oth bid and sh ares h eld beneficially by officers, d i ch an ge A ct o f 1934 (15 U .S.C. 7 8 e ), (3) T h ere a re 1,200 or m ore holdera o f asked prices fo r th e stock are con tin u rectors, or ben eficial ow ners of m ore record, as defined in SEC rule 1 2 g 5 -l ously available to th e gen eral public, and th a n 10 p ercen t o f th e stock; and sh all (6) T here are 300,000 or m ore shares m eet tw o o f th e th ree ad d ition al require (17 CFR 2 4 0 .1 2 g 5 -l), o f th e stock w ho a re n o t officers, directors, or beneficial o f su ch stock ou tstan d in g in ad d ition to m en ts th at: (8) T he sh ares described in subpara ow ners o f 10 per c e n t or m ore o f th e sh ares h eld b en eficially by officers, di rectors, or ben eficial ow ners o f m ore graph (7) o f th is paragraph h ave a m ar stock , or th e average d aily trad in g vol u m e o f su ch stock, a s determ ined by th e th a n 10 p er ce n t o f th e stock ; and sh a ll k et valu e o f a t le a st $5 m illion, (9) T h e m inim um average bid price m eet tw o o f th e th ree ad d ition al re B oard, is a t le a st 500 shares, o f su ch stock, as determ ined by th e (4) T h e issu er Is organized under th e quirem ents th a t: (7) T h e sh ares described in subpara B oard, is a t le a st $5 per share, and law s o f th e U nited S ta tes or a sta te* (10) T h e issuer h as a t le a st $5 m illion a n d it, or a predecessor In in terest, h a s graph (6) o f th is paragraph con tin u e to h ave a m ark et valu e o f a t le a st $2.5 o f cap ital, surplus, and undivided profits. been in ex isten ce fo r a t le a st 3 years, (i) R eq u irem en ts fo r co n tin u ed in clu (5) T h e stock h a s been publicly traded m illion , (8) T he m inim um average bid price o f sio n on L ist of O T C M a rg in S tocks. E x fo r a t le a st 6 m onths, cep t as provided in subparagraph (4) (6 ) D a ily quotation s from both bid su ch stock, as determ ined by th e Board, o f g 2 2 0 .2 (e), OTC m argin stock sh all is a t le a st $3 per share, and a n d asked prices fo r th e stock are con (9) T h e Issuer con tin u es to h ave a t m eet th e requirem ents th at: tin u ou sly available to th e gen eral pub (1) TTie stock con tinu es to b e su bject le a st $2.5 m illion o f cap ital, surplus, and lic, and to registration under sectio n 12(g) (1) o f undivided profits. (7) T here are 500,000 or m ore shares th e S ecu rities E xch an ge A ct o f 1934 (15 o f su ch stock ou tstan d in g in ad d ition to U.S.C. 781(g) ( 1 ) ) , or if issued by an in sh ares h eld beneficially by officers, d i PART 220— CREDIT BY BROKERS AND su ran ce com pany su ch issuer con tin u es rectors, or b en eficial ow ners o f m ore DEALERS to be su b ject to section 12(g) (2) (G ) (15 th a n 10 per cen t o f th e stock; and sh a ll (2) P aragraphs (h ) an d (i) of I 220.8U.S.C. 781(g) (2) ( G ) ) and to h ave a t lea st m e et tw o o f th e th ree ad d ition al require (th e Sup p lem en t to R egu lation T ) would $1 m illion o f cap ital and surplus, or if m en ts th at: issued by a closed -en d In vestm en t m an b e am ended as s e t fo rth below: agem en t com pany such issuer con tin u es (8) T h e sh ares described in subpara to be su b ject to registration pursuant to graph (7) o f th is paragraph h a ve a m ar § 220.8 Supplem ent. • » • * • section 8 of th e In vestm en t C om pany A ct k et value o f a t le a st $5 m illion , (h ) R eq u irem en ts fo r inclusion on L isto f 1940 (15 U.S.C. | 80ar-8). (9) T h e m inim um average bid price of (2) T hree or m ore dealers stan d su ch stock, a s determ ined by th e Board, o f O T C M argin S tocks. E xcep t as pro vided In subparagraph (4) o f S 220.2(e), w illin g to, and do in fa ct, m ake a m arket is a t le a st $5 per share, and (10) T h e Issuer h a s a t le a st $5 m illion OTC m argin stock sh a ll m eet th e re in su ch stock in clu d in g m aking regularly published bona fide bids an d offers for o f cap ital, surplus, and undivided profits. quirem ents th a t: (1) T h e sto ck is su b ject to registration su ch stock for th eir own accounts, or (e) R eq u irem en ts to r co n tin u ed in clu th e stock is registered on a secu rities e x sion on L ist o f O TC M argin S to ck s. E x under section 12(g) (1) o f th e Securities ch an ge th a t is exem pted by th e Secu rities c e p t a s provided in subparagraph (4) o f E xch an ge A ct o f 1934 (15 U .S.C . 781(g) and E xch an ge C om m ission from registra ( 1 ) ) , is issued by a n Insurance com pany S 2 0 7 .2 (f), su ch stock sh a ll m eet th e re su b ject to sectio n 12(g) (2) (G ) (15 U.S.C. tio n as a n a tion a l secu rities exchange quirem ents th a t: 781(g) (2) (G )) th a t h a s a t le a st $1 m il pursuant to section 5 o f th e S ecu rities (1) T h e stock continues to be su b jectlio n o f ca p ital an d surplus, or Is issued E xch an ge A ct o f 1934 (15 UJS.C. 7 8 e ), to registration un d er section 12(g) (1) o f by a closed -en d Investm en t m an agem en t (3) T h ere con tin u e to b e 800 or m ore th e S ecu rities E xch an ge A ct o f 1934 (15 com pany su b ject to registration p ursuant holders o f record, a s defined in SEC R ule U.S.C. 781(g) ( 1 ) ) , or if issued by a n in to sectio n 8 o f th e In vestm en t Com pany 1 2 g 5 -l (17 C.F.R. 2 4 0 .1 2 g 5 -l), Of th e su ran ce com pany su ch Issuer con tin u es A ct Of 1940 (15 U.S.C. S 80ar-8), stock w ho are n ot officers, directors, or to be su b ject to section 12(g) (2) (G ) (15 (2) Four or m ore dealers sta n d w illin g b en eficial ow ners o f 10 p ercen t or m ore U .S.C . 7 8 1 (g )(2 )(G )) an d to h ave a t to , a n d do in fa ct, m ake a m ark et in o f th e stock , or th e average d ally tra d le a st $1 m illion o f ca p ita l an d surplus, or su ch stock in clu d in g m ak in g regularly in g volum e o f su ch stock, as determ ined if issued by a closed -en d Investm ent published bon a fide bids an d offers fo r m an agem en t com pany su ch Issuer con* su ch stock fo r th eir ow n accou n ts, or th e by th e B oard, Is a t lea st 300 shares, (4) T h e Issuer con tin u es to be a U.S. tin u es to be su b ject to registration pur sto ck is registered o n a secu rities e x su a n t to sectio n 8 o f th e In vestm en t ch an g e th a t is exem pted by th e Securi corporation, tie s an d E xch an ge Com m ission from •As defined In IS UJ3.C. 78c(a) (16). • As defined In 15 DJ8.C. 78c(a) (16). reg istratio n as - n a tio n a l secu rities ex a (5) D ally quotations for b oth bid and asked prices for th e stock are con tin u ously available to th e general public, and (6) T here are 300,000 or m ore shares o f su ch stock outstan d in g In addition to sh ares h eld beneficially by officers, d i rectors, or b eneficial ow ners o f m ore th an 10 percent of th e stock; and sh a ll m eet tw o o f th e th ree ad d ition al requirem ents th a t; (7) T h e shares described in subpara graph (6) o f th is paragraph con tin u e to have a m arket value o f a t lea st $2.5 m illion, (8) T he m inim um average bid price o f su ch stock, as determ ined by th e Board, is a t le a st $3 per share, and (9) T he issuer con tin u es to have a t le a st $2.5 m illion of cap ital, surplus, and undivided profits. (7) T h ere are 500,000 or m ore sh ares are in v ited to subm it relevan t data, view s, o f su ch stock ou tstan d in g in ad d ition to or argum ents con cern in g th is proposal. sh ares h eld b en eficially by officers, direc A ny su ch m aterial should be subm itted tors, or beneficial ow ners o f m ore th a n in w ritin g to th e S ecretary, Board of 10 per cen t o f th e stock; and sh all m eet G overnors o f th e F ederal R eserve S y s tw o o f th e th ree ad d ition al requirem ents tem , W ashington, D.C. 20551, to be re ceived n o la ter th a n A pril 23, 1976. All th a t: (8) T h e sh ares described in subpara m aterial subm itted sh ou ld include th e graph (7) o f th is paragraph h ave a docket num ber R -0025. S u ch m aterial w ill be m ade available fo r Inspection and m arket valu e of a t le a st $5 m illion, (9) T h e m inim um average bid price copying upon request, excep t as provided o f su ch stock, as determ ined by th e In § 261.6(a) o f th e B oard’s R ules R e garding A vailability o f Inform ation. Board, Is a t le a st $5 per share, and T h is n o tice is published p ursuant to (10) T h e Issuer h a s a t le a st $5 m il lio n o f cap ital, surplus, an d undivided sectio n 553(b) o f T itle 5, U nited S ta tes Code, and § 262.2(a) o f th e R ules of profits. (e) R equirem ents fo r continued inclu Procedure o f th e Board o f G overnors of sion on L ist o f OTC M argin Stocks. E x th e F ederal R eserve S ystem (12 C.F.R. cep t a s provided in subparagraph (4) of 2 6 2 .2 (a )). § 22 1 .3 (d ), OTC m argin stock sh a ll m eet B y order of th e Board of Governors, th e requirem ents th at: M arch 10,1976. (1) T he stock con tin u es to be su bject PART 221— CREDIT BY BANKS FOR THE [ s e a l] T h e o d o r e E. A l l is o n , PURPOSE OF PURCHASING OR CARRY to registration under section 12(g) (1) of Secretary of the Board. th e S ecu rities E xch an ge A ct o f 1934 (15 ING MARGIN STOCKS [PR Doc.70-7747 Filed 3-17-70;8:45 am ] U.S.C. 781(g) ( 1 ) ) , or if Issued by an in 3. Paragraphs (d) and (e) of § 221.4 surance com pany such issu er continues (th e Supplem ent to R egulaton U ) w ould to be su b ject to section 12(g) (2) (G ) (15 be am ended as set forth b elo w ; U.S.C. 7 8 1 (g )(2 )(G )) and to h ave a t least $1 m illion o f cap ital and surplus, or § 221.4 Supplem ent. if issued by a closed -en d in vestm en t * * * * * m an agem en t com pany su ch issuer co n (d) R equirem ents fo r inclusion on tin u es to be su b ject to registration pur L ist of OTC M argin Stocks. E xcep t as su a n t to section 8 o f th e In vestm en t provided in subparagraph (4) o f § 221.3 C om pany A ct o f 1940 (15 U.S.C. § 8 0 a -8 ), (d ), OTC m argin stock sh all m eet th e (2) T h ree or m ore d ealers stan d w ill requirem ents th a t: in g to, and do in fa ct, m ake a m arket in (1) T h e stock is subject to registration su ch stock in clu d in g m aking regularly under section 12(g) (1) of th e S ecu rities published bona fide bids an d offers for E xch an ge A ct o f 1934 (15 U.S.C. 781(g) su ch stock for th eir own accounts, or th e ( 1 ) ) , is issued by an insu ran ce com pany su b ject to section 12(g) (2) (G ) (15 stock is registered on a secu rities ex U.S.C. 781 (g) (2) ( G )) th a t h as a t le a st ch an ge th a t is exem pted by th e Secu ri $1 m illion of capita] and surplus, or Is ties and E xch an ge C om m ission from issued by a closed -en d in vestm en t m a n registration as a n atio n al secu rities ex agem ent com pany su b ject to registration ch an ge p ursuant to section 5 of th e p ursuant to section 8 of th e In vestm en t Securities* E xch an ge A ct of 1934 (15 C om pany A ct o f 1940 (15 U.S.C. 8 0 a -8 ), U.S.C. 7 8 e ), (3) T h ere con tin u e to be 800 or m ore (2) Four or m ore dealers sta n d w ill in g to, and do in fa ct, m ake a m arket holders o f record, as defined in SEC R ule in su ch stock in clu d in g m aking regularly 1 2 g 5-l (17 C.F.R. 2 4 0 .1 2 g 5 -l), o f th e p ublished bona fide bids and offers for stock w ho are n ot officers, directors, or su ch stock for th eir own accounts, or th e ben eficial ow ners of 10 per cen t or m ore stock is registered on a secu rities e x o f th e stock, or th e average daily trading ch an ge th a t is exem pted by th e S ecu ri volum e o f su ch stock, a s determ ined by ties a n d E xchange C om m ission from th e Board, is a t lea st 300 shares, (4) T h e issuer continues to be a U .S. registration as a n a tio n a l secu rities e x ch an ge pursuant to section 5 of th e corporation, (5) D ally q uotations for both bid and S ecu rities E xch an ge A ct o f 1934 (15 asked prices fo r th e stock are con tin u U.S.C. 7 8 e ), (3) T h ere are 1,200 or m ore holders o f ously available to th e general public, and (6) T h ere are 300,000 or m ore sh ares record, a s defined in SEC R ule 1 2 g 5 -l (17 C.F.R. 2 40.12g5-l) o f th e stock w ho o f su ch stock ou tstan d in g in addition to are n o t officers, directors, or ben eficial sh ares h eld beneficially by officers, di ow ners o f 10 per cen t or m ore o f th e rectors, or b en eficial ow ners o f m ore stock, or th e average d aily trading th a n 10 per cen t of th e stock; and sh a ll volum e o f su ch stock, as determ ined by m eet tw o o f th e th ree add ition al require m en ts t h a t; th e Board, is a t lea st 500 shares, (7) T h e shares described in subpara (4) T h e issuer is organized under th e graph (6) o f th is paragraph con tin u e to law s o f th e U nited S ta tes or a S ta te • and it, or a predecessor in in terest, h a s been have a m arket valu e o f a t le a st $2.5 m il lion , in existen ce fo r a t le a st 3 years, (8) T h e m inim um average bid price o f (5) T h e stock h as been publicly traded su ch stock , as determ ined by th e Board, for a t le a st 6 m onths, Is a t le a st $3 per share, and (6) D aily quotations for both bid and (9) T h e issuer con tin u es to h a v e at asked prices fo r th e stock a re con tin u le a st $2.5 m illion o f cap ital, surplus, an d ously availab le to th e gen eral public, an d undivided profits. T o aid In th e con sid eration o f tills m a tter by th e B oard, In terested persons •As defined In 15 UJ3.0.78c (a) (IB). BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM SUPPLEMENT TO LIST OF OTC MARGIN STOCKS EFFECTIVE March 15, 1976 ADDITIONS Chart House, Inc. No par common DELETIONS Automated Medical Laboratories, Inc. $.01 par common Martha White Foods, Inc. $1.00 par common California-Western States Life Insurance Company $2.50 par common National Medical Care, Inc. $.20 par common Erie Technological Products, Inc. $2.50 par common Pacific Lumber Company, The $3.33-1/3 par coranon Exchange Oil & Gas Corporation $1.00 par common Parker Drilling Company $1.00 par common Southern California First National Corporation $5.00 par common Interstate Corporation, The $1.00 par common Technicare Corporation $.50 par common NAME CHANGES FROM TO Arlen Property Investors $1.00 par shares of beneficial interest API Trust $1.00 par shares of beneficial interest Bank of Tokyo of California, The $5.00 par common California First Bank $5.00 par common Gelco-Feld Corporation $.50 par common Gelco Corporation $.50 par common Table 2 Summary of Proposed Changes to OTC Margin Stock (iontinued Listing Requirements a/ .. Current Continued Listing Requirements Proposed Continued Listing Requirements (1) Stock is registered under the Securities Exchange Act of 1934 (1) Same (2) Stock has 3 market makers (2) Same (3) Stock has 800 public holders of record (3) Same, or has average daily volume of 300 shares (4) Issuer is U.S. Corporation (4) Same (5) Stock prices are continuously available to the public (5) Same (6) 300,000 publicly held shares (6) Same (7) Stock has market value of $2.5 million (7) Same (8) Stock has average price of $5 per share (8) Stock has average price of $3 per share (9) Issuer has at least $2.5 million of capital, surplus, and undivided profits (9 ) Same a/ All of the first six requirements must be satisfied, but only two of the final three requirements must be met. Table 1 Summary of Proposed Changes to OTC Margin Stock Initial Listing Requirements a/ Current Listing Requirements Proposed Listing Requirements (1) Stock is registered under the Securities Exchange Act of 1934 (1) Same (2) Stock has 5 market makers (2) Stock has 4 market makers (3) Stock has 1200 public holders of record (3) Same, or has average daily volume of 500 shares (4) Issuer is U.S. Corporation in existence for at least 3 years (4) Same (5) Stock publicly traded for at least 6 months (5) Same (6) Stock prices are continuously available to the public (6) Same (7) 500,000 publicly held shares (7) Same (8) Stock has market value of $5 million (8) Same (9) Stock has average price of $10 per share (9) Stock has average price of $5 per share (10) Issuer has at least $5 million of capital, surplus and undivided profits (10) Same a/ All of the first seven requirements must be satisfied, but only two of the final three requirements must be met.
@FedFRASER