Market Makers Play a Significant Role in Reverse Mergers

One overlooked individual in the process of taking a company public through reverse merger is the market maker. The market marker is critical especially if the company is going to be listed on OTC Bulletin Board or the NQB. Pink sheets.

Once the private company has decided to go public and has engage a consultant to advise management on the best way to proceed. And a determination has been made to do a reverse merger.

The first step is to identify an available corporate shell to purchase and perform the due diligence on the shell. The company decides to purchase the shell and proceeds with the reverse merger. The required Securities and Exchange Commission filing must be done.

The Securities and Exchange Commission upon reviewing the document and finding the document to be in order will approve the company's filing.

Now the consultant will recommend a market maker to sponsor the company with NASDAQ's Small Cap Market, OTC Bulletin Board or NQB Pink sheets. This is accomplished by filing form 15c211.

The broker dealer may not publish a quotation for any securities unless certain information concerning the issuer is available and the broker or dealer has a reasonable basis for believing that the information is accurate.

Some of those of those Securities and Exchange commission requirement are satisfied if:

(1) Securities Act registration statement (F-6, F-1) has been filed within 90 days.

(2) The issuer is complying with the filing requirements and the broker dealer has in its records the issuer's most recent annual report.

(3) The issuer is complying with rule 12g3-2(b)

(4) The broker dealer has on record information relating to the issuer, its securities, its business, products and facilities, management and financial statements and certain other require information.

The broker dealer is not compensated by company for this service causing the broker to absorb the cost involved in time spent and the regular monthly charges by the OTC. Bulletin Board for being a market maker in the company's stock.

The broker must stay on top of the filing and answer all questions pertinent to filing as requested by the OTC Bulletin Board. After approval the market maker must again file a request to publish a price for the securities of the issuer.

For a short period of time the broker dealer will be the sole market maker, being willing to buy and sell the stock for his own inventory, and assuming all the risk by himself but he also will be involved all the transactions that take place and stands to make all the profits as well.

After a period of time (usually 30 days) other market makers will be able to piggy back on the broker dealer who did the original filing and be able to publish a quotation. This provide more liquidity since a single market maker will not be responsible for all transactions.

Market Makers in Bulletin Board stocks must honor their bid and ask (bid the price they are willing to pay for stock, ask the price they are willing to sell stock) price. Below is a limited chart of the price and size mandated by the OTC.bb.

Price Minimum quote size 0-.50 5,000 0.51-1.00 2,500 1.01-10.00 500 10.01-100.00 200

The market maker role in assisting companies to go public is significant, he is the one who will be taking the risk and will reap the rewards depending on how well the securities trade.

Please visit our website for additional information in going public. www.genesiscorporateadvisors.com

Joseph D. Quinones, President of Genesis Corporate Advisors has spent over 25 years in the securities industry. In 1992 he founded JDQ Financial Group, Inc. and proceeded to build it up from a one man operation to the point where it employed many traders, advised numerous client and generate millions in revenues.

In The News:

pen paper and inkwell


cat break through


Hosted PBX, Is It Right For You?

"Order Now!" "Your Business Will Fail If You Don't Have... Read More

The PR Commitment to Small Business

We're birds of a feather, public relations and small business.... Read More

When to Say NO!

When is it a good thing to say no to... Read More

Small Business Server Business Tips

Top 3 Ways to Maximize Your Small Business Server Consulting... Read More

11 Things Small Business Owners Can Learn From Rudy Giuliani

1. Leadership Is Learned ? While many people appear to... Read More

Top 10 Rules for Small Business Success

1. TargetYou are not all things to all people. Decide... Read More

What is your Motto?

Company mottos can easily be printed on a business card.Sometimes... Read More

Is Your Business Property Safe and Secure?

Security Professionals provide the products and services necessary to create... Read More

In Home Daycare Businesses for Profit

To have one of the popular in home daycare businesses.... Read More

10 Ways to Start a Business on a Budget

If you've been thinking about starting a business, but are... Read More

The Franchisors Heavy Load

Why are we over regulation the franchising industry, what purpose... Read More

Small Business Newsletter Dilemma: Which Day Do I Send?

If you're just ramping up your small business email newsletter,... Read More

Dealing With a Crooked on the Take Government Worker

Many government department heads are on the take. Oh they'll... Read More

Are You Making the Most of Your Intern?

KEEPING INTEREST HIGH: Supervision is key to the success of... Read More

What Help is there for Veterans Starting a Business?

Some of the very qualities that attract people to the... Read More

Cash Flow: Why Chaos Equals Poor Cash Flow

Recently one of my customers told me the chaos swirling... Read More

Earn More Money in Your Small Business by Creating a PIG

If you really want to earn more money with your... Read More

Starting a Tractor Washing Business

In the heavy equipment cleaning business you can make good... Read More

Operating Your Small Business ? Everything Really Is a Project

Do you operate your business as a series of projects,... Read More

Small Business Marketing Secrets: Look Like Sizzle, Be The Steak

You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More

Carwash Manual Sample Outline

Car wash businesses are unique to other businesses. In fact... Read More

Essex Accountants: Top Things to Look For

One of the most common horrific mistakes a business can... Read More

Creating a Dynamite Account Plan

Why do you need an account plan?When you first decide... Read More

Bringing Home the Bacon

In general, all of us know how to accomplish the... Read More

The Wrap on Ag Plastic

While driving through Pennsylvania farmland, you have probably noticed an... Read More

Time to Sell your Restaurant? Some Advice from Restaurant Consultants, Inc.

As a specialist in getting restaurants open, it is surprising... Read More

The Greatest Challenges the Internet Consultant Faces!

While there are few career paths that some would call... Read More

The Business Failed, But Did You?

Q: After years of dreaming about starting my own business,... Read More

The Types of Skip Trace Accounts

First, we need to define the different kinds of skip... Read More

A Gift Basket Home Business is an Easy Way to Wrap up Profits

You want to know more about making money with your... Read More

Increase Profits With a Small Investment of Time and No Money

The less a business pays for goods and services the... Read More

How To Cut Expenses And Manage Your Business

If you own a small business, you should know that... Read More

Small Business No How - Dont Give Away the Farm

You're pretty proud of yourself! After all, only four months... Read More